KUALA LUMPUR: ACE Market debutant RT Pastry Holdings Bhd plans to channel its initial public offering (IPO) proceeds into expansion in the East Coast due to strong untapped demand and limited competition from retail bakery chains, chief operating officer Tia Yu Hoo said.
Tia said the company is strengthening its presence on the East Coast to better serve customers in the region, while accelerating its expansion plans to reach more Muslim consumers and the wider market.
“Tentatively, we are targeting Kuantan, Pahang first; then, we will move to other places (in the East Coast region) by next year,” he said at the company’s listing ceremony yesterday.
At 9am, the pastry and bakery products firm debuted on the ACE Market at 17.5 sen, 0.5 sen below its IPO price of 18 sen.
At 5pm, RT Pastry closed down two sen to 16 sen with 46.05 million shares traded.
On whether RT Pastry plans to expand into overseas markets, Tia said: “Not at this moment, but definitely we will explore this in the future,” he said.
On plans for a new manufacturing facility, Tia said the company aims to identify a strategic location or suitable premises by the fourth quarter of this year before commencing the necessary works.
RT Pastry said it is using its IPO as a springboard to transform itself into a vertically integrated food manufacturing platform by combining nationwide retail expansion with a fast-growing original equipment manufacturer business serving third-party cafes and food retailers.
“The one that we are discussing, actually, we will customise OEM products for them so that it will be slightly differentiated from our retail outlets and to create more value for the corporate customers as well.
“It depends on their requirements and the product quality,” Tia said.
RT Pastry currently operates 18 outlets and two central manufacturing facilities in Seri Kembangan and Shah Alam. — Bernama
