KUALA LUMPUR: Poultry farming company, Hock Soon Capital Bhd, aims to raise RM60mil from its initial public offering (IPO) ahead of its listing on the Main Market of Bursa Malaysia on Feb 13.
Of the total proceeds, RM53.5mil or 89.1% will be utilised for the establishment of its new poultry farm in Teluk Intan, Perak, and the remaining RM6.5mil or 10.9% will be used to defray listing expenses.
Speaking during a press conference after the company’s prospectus launch yesterday, Hock Soon’s executive director Alex Ong Keat Hoe said the new poultry farm is expected to nearly double the company’s egg production, significantly boosting the group’s overall output capacity upon completion.
“The new poultry farm will be constructed progressively over five years,” he said, adding that the facility is projected to boost production by about 1.5 million eggs per day, strengthening its ability to meet domestic demand.
Ong said the group plans to expand its market reach to Singapore.
“As soon as we get our approval from the Singapore Food Agency (SFA), maybe around the first quarter of this year, then we will begin exporting there,” he added.
Hock Soon’s IPO entails 100 million new shares and an offer for sale of 50 million existing shares, representing 20% and 10% of the company’s enlarged share capital, respectively.
Of the 100 million new shares, 25 million will be made available to the Malaysian public via balloting and 12.5 million will be made available for eligible directors, employees and individuals who have contributed to the group’s success through the pink form allocation.
The remaining 62.5 million shares will be allocated to bumiputra investors approved by the Investment, Trade and Industry Ministry, while 50 million shares will be offered via private placement to selected investors.
Upon its listing, Hock Soon’s enlarged share capital will comprise 500 million shares with a market capitalisation of RM300mil, based on the IPO price of 60 sen per share.
Application for the IPO opened yesterday and closes at 5pm on Jan 30.
M&A Securities Sdn Bhd is the adviser, underwriter and placement agent for the IPO exercise. — Bernama
