KUALA LUMPUR: Butterfield FB Bhd (BFB) aims to raise RM72 million from its initial public offering (IPO) en route to listing on the ACE Market of Bursa Malaysia on Sept 15, 2026.
The manufacturer of coffee and tea extract powder blends said in a statement today that RM15.2 million from the proceeds will be used to expand the group’s headquarters at Bukit Minyak, Penang.
"The expansion will add approximately 29,170 square feet (sq ft) of production space and 9,954 sq ft of storage space.
"The expansion will support the installation of a fourth manufacturing line with 4,095 tonnes capacity along with new machinery and equipment,” it said.
A further RM37.8 million will be allocated for working capital, while RM13 million will be used to pursue strategic investments, mergers and/or acquisition opportunities in companies and/or manufacturers which are brand owners of instant coffee and tea premix brands, it added.
The remaining RM6 million will be used to defray estimated listing expenses, it said.
BFB’s IPO exercise comprises a public issuance of 150 million new ordinary shares, representing 18.8 per cent of its enlarged share capital.
It also includes an offer for sale of 72 million existing shares, or 9.0 per cent of its enlarged share capital, via private placement to bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI) and selected investors.
"Out of the 150 million new shares, 40 million shares will be made available to the Malaysian public via balloting, 16 million shares to eligible directors, employees and persons who have contributed to the success of the group,” it said.
Meanwhile, the remaining 94 million shares will go towards private placements to bumiputera investors approved by MITI.
Upon listing, BFB is expected to have a market capitalisation of RM384 million based on an enlarged issued share capital of 800 million shares and an IPO price of RM0.48 per share.
Following the prospectus launch, applications for the public issue are open from today and will be closed on Sept 2, 2026 at 5 pm.
M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for the IPO exercise. - Bernama
