Alex Ong Keat Hoe, executive director of Hock Soon Capital
PETALING JAYA: Hock Soon Capital Bhd plans to allocate the bulk of its future initial public offering (IPO) proceeds to develop a new poultry farm in Teluk Intan, Perak, aimed at expanding egg production capacity in line with its growth strategy.
Executive director Alex Ong Keat Hoe told StarBiz: “We are looking to raise RM60mil, with 89.1% of the proceeds to be allocated for the development of the Teluk Intan project.”
Ong said the total project cost is estimated at around RM90mil, with the balance of the expenditure to be funded internally.
Hock Soon delivered strong financial growth from the financial year ended Sept 30, 2022 (FY22) to FY24, primarily driven by higher sales of table eggs.
Over this period, net profit surged 181% to RM40.7mil in FY24 from RM14.5mil in FY22, representing a two-year compound annual growth rate of 68%. The company has also maintained a healthy three-year average net margin of 20.4%.
Ong said Hock Soon is financially capable of generating sufficient internal funds for the Teluk Intan project, based on the company’s strong performance in the first quarter of 2026 (1Q26).
The expansion is expected to nearly double the poultry farming company’s production capacity, with its current farm output standing at about 1.6 million eggs per day.
“With this new farm, we can produce about 1.5 million eggs per day, with the entire project to be completed within five years of the IPO,” he said.
Ong added that the proposed Teluk Intan farm is designed for higher operational efficiency compared with the company’s current operating farm in Bidor, Perak.
Hock Soon’s poultry farm in Bidor comprises 26 and 7 closed-house chicken coops for mature hens and pullets with capacities of 1.74 million mature hens and 486,912 pullets, respectively.
“With the Teluk Intan farm, we expect a gradual increase in productivity as we will have higher egg production, which should translate into higher revenue and volume. Our margins should hence maintain healthy growth post-IPO,” Ong explained.
Currently, Hock Soon’s multi-channel distribution consists of wholesalers, retailers and food manufacturers.
“About 20% of our production is sold to retailers, while 68% goes to wholesalers. Moving forward, our focus will be on selling to more retailers.
“We want to explore more opportunities with retailers because this is where the company’s products will be packaged under our house brand,” he added.
Noting that eggs are a staple protein, Ong said this strategy should have a positive impact on Hock Soon’s brand recognition.
“I believe ordinary eggs will be a major contributor to balanced growth, and these are packaged under the Q-plus brand. At present, we supply around eight retailers, including Lotus’s, Jaya Grocer, NSK Grocer, and Segi Fresh,” he said.
He noted that the company is strengthening its distribution network to cover more retail outlets, including wet markets, mini markets, sundry shops, and grocery chains, to expand its reach.
On the cost front, Hock Soon is expected to proactively manage feed costs, one of the company’s largest expense components.
“To mitigate this, we hedge our consumption by purchasing about half of our feed on the spot market, thereby minimising price fluctuations.
“With the ringgit strengthening, this is actually an advantage for us, as our feed costs should gradually decline,” he said.
“I believe feed costs will be very stable going forward.”
Hock Soon currently holds about 2.5% market share of the country’s egg industry.
Ong noted that demand is mainly from the domestic market, but the company is looking to expand overseas.
“We submitted our export licence application to the Singapore Food Agency in June 2024, completed the required audit in July 2025, and expect approval by the first quarter of 2026,” he said.
“This expansion is expected to increase sales, diversify revenue, reduce reliance on the Malaysian market, and mitigate exposure to fluctuations in egg and feed prices.”
Under its IPO, Hock Soon is issuing 100 million new shares and offering for sale 50 million existing shares at 60 sen a share.
Upon listing, the company expects a market capitalisation of RM300mil. It is scheduled to list on the Main Market of Bursa Malaysia on Feb 13, 2026.
