SBH Marine Holdings Bhd has signed a crucial underwriting agreement with KAF Investment Bank Bhd (KAF IB) for its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia. SBH Marine Holdings Bhd, a prominent player in the frozen seafood sector, is poised to take its operations to the next level with this strategic move.

IPO Details

The IPO, as revealed by SBH Marine Holdings, encompasses the issuance of 180 million new shares and the sale of 50 million existing shares.

Of the 180 million public issue shares, 45 million will be made available to the Malaysian public through a ballot. An additional 36 million shares will be allocated to eligible directors, employees, and individuals who have contributed significantly to the success of SBH and its subsidiaries.

A noteworthy allocation of 61 million public issue shares will be made available to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI). The remaining 38 million will be privately placed with selected investors, as part of the company’s strategic expansion efforts.

Offer for Sale Shares

The 50 million shares offered for sale will be accessible exclusively to Bumiputera investors approved by the MITI.

KAF Investment Bank Bhd (KAF IB) has not only stepped in as the sole underwriter for SBH’s IPO but also serves as the principal adviser, sponsor, and sole placement agent for this important exercise.

Headquartered in Kuala Kurau, Perak, SBH Group specializes in various stages of the frozen seafood supply chain. The company boasts a processing plant with an annual capacity of 4,800 tonnes, offering frozen seafood products, with a particular focus on shrimps and cephalopods, available in block frozen, semi-individual quick freezing (IQF), and IQF forms.

Moreover, SBH Group operates two aquaculture shrimp farms in Kuala Kurau and Selinsing, Perak, dedicated to cultivating black tiger prawns and whiteleg shrimps. The company’s seafood products are predominantly exported to countries in Europe, the Middle East, and Asia.

Utilization of IPO Proceeds

SBH Marine Holdings has laid out its plans for the proceeds generated from the IPO. The funds will be channeled into the development of the Selinsing Farm, the construction of a new seafood processing plant, acquisition of machinery/equipment and motor vehicles, meeting working capital requirements, and covering listing expenses.

A part of the expansion plan is the development of the remaining ponds at the Selinsing Farm, with completion anticipated by mid-2027. This development will increase the total annual shrimp carrying capacity of both farms to 1,800 tonnes by 2027.

Furthermore, SBH Marine Holdings has ambitious plans to venture into shrimp hatchery and nursery operations this year. This initiative aims to strengthen the company’s vertical integration by producing and supplying shrimp post larvae directly to its aquaculture shrimp farms, enhancing self-sustainability and product quality.