KUALA LUMPUR: Bakery products manufacturer HSS Holdings Bhd plans to strengthen its presence across South-East Asia, capitalising on rising demand for halal products following its ACE Market debut on Bursa Malaysia.
Production director Joshua Lau Ern Tien said South-East Asia remains the group’s key growth market, driven by the increasing acceptance of Malaysian halal products, one of the company’s key strengths and selling points.
“Our traditional products, such as cakes and biscuits, have also gained wide acceptance in markets including Indonesia, the Philippines, Thailand and even Dubai,” he told reporters after the company’s listing ceremony yesterday.
At 9am, HSS opened flat at 18 sen on its debut, unchanged from its initial public offering (IPO) price, with 16.23 million shares traded. At 5pm, HSS remained flat at 18 sen with 90.33 million shares traded.
The company aimed to raise RM13.5mil from its IPO, with RM2.57mil for capital expenditure for the group’s manufacturing facilities; RM4.5mil to repay bank borrowings; RM2.93mil for working capital, and RM3.5mil to defray listing expenses.
The proceeds raised will enable HSS to enhance its manufacturing capabilities, invest in automation and operational improvements, strengthen its proprietary brands and improve overall efficiency, Lau said.
“Malaysia remains our largest contributor. We plan to onboard more retailers locally while expanding into new markets within and beyond Malaysia,” he said.
Its network comprises 330 wholesalers, 117 retailers and five distributors in Malaysia, Singapore, Indonesia, Australia, Cambodia and South Korea.
Upon listing, HSS has a market capitalisation of RM90mil, based on its IPO price of 18 sen apiece, with an enlarged issued share capital of 500 million shares.
M&A Securities Sdn Bhd was the principal adviser, sponsor, underwriter, and placement agent for the IPO. — Bernama
