KUALA LUMPUR: Hock Soon Capital Bhd has signed an underwriting agreement with M&A Securities Sdn Bhd in conjunction with its initial public offering (IPO) on the Main Market of Bursa Malaysia.
The poultry farmer, which specialises in the rearing of layer chickens for the production and sale of table eggs, is tentatively scheduled to list in February 2026.
The IPO comprises the issuance of 100 million new IPO shares and an offer for sale of 50 million existing shares, representing 20% and 10% of the enlarged share capital of Hock Soon respectively.
Under the agreement, M&A Securities will underwrite 37.5 million issue shares made available to the Malaysian public via balloting and eligible directors, employess of Hock Soon and its subsidiaries.
The remaining 62.5 million issue shares will be placed out to Bumiputera investors approved by the Ministry of Investment, Trade and Industry.
Hock Soon executive director Alex Ong Keat Hoe said the IPO will raise funds to establish a new poultry farm in Teluk Intan, Perak as part of its expansion plans.
“We plan to progressively construct 25 chicken coops at the new farm, allowing disciplined expansion in line with market conditions and customer growth. Once operational, the farm is expected to increase our egg production capacity, supporting both business and financial growth”, he added.
As at Feb 28, 2025, Hock Soon operates a poultry farm in Bidor, Perak, comprising 26 and 7 closed-house chicken coops for mature hens and pullets, with capacities of 1,740,864 mature hens and 486,912 pullets respectively.
The farm’s current egg production capacity is approximately 1.48 million eggs per day.
Over a two-year period from Sept 30, 2022, to Sept 30, 2024, Hock Soon's net profit surged 181% to RM40.7mil, representing a two-year compounded annual growth rate of about 67.5%.
The company also maintained a healthy three-year average net margin of 20.4%.
M&A Securities is the adviser, underwriter and placement agent for the IPO exercise.
