SBH Marine Surges 16% in ACE Market Trading Debut after RM50.6m IPO

Shares in SBH Marine Holdings Bhd surged 16% in their trading debut on Monday following the frozen seafood company’s RM50.6 million initial public offering (IPO), bucking subdued broader market conditions.

SBH Marine opened at 25.5 sen versus its IPO price of 22 sen per share on Bursa Malaysia’s ACE Market. The stock climbed to 26.5 sen, up 20% from its listing price, at 9.05am after more than 53 million shares changed hands. In contrast, the country’s benchmark index FBM KLCI was marginally lower.

Demand from investors during the IPO was strong. The public tranche of the IPO was oversubscribed by 27.66 times, the company said in an exchange filing. The Bumiputera offering was oversubscribed by 20.05 times, while the remaining retail offering was oversubscribed by 35.26 times.

Meanwhile, both the 61 million new shares and 50 million existing shares offered to Bumiputeras were also fully taken up, as well as the 38 million issue shares to select investors.

The IPO involved a public issue of 180 million new ordinary shares and an offer for sale of 50 million existing ordinary shares.  All in all, the IPO involved the sale of an about 26% stake, and would value the company at RM195.36 million.

At SBH Marine's ACE Market listing ceremony in Kuala Lumpur on Monday were (from left) Wyncorp Advisory Sdn Bhd managing director Wong Yoke Nyen, Saw, SBH Marine deputy MDs Tan Yuak Kwang and Tan Yuak Ming as well as Boo Nam, Perak Menteri Besar Datuk Seri Saarani Mohamad, SBH Marine non-executive chairman Mohd Salim Dulatti, Bursa Malaysia Bhd chairman Tan Sri Abdul Wahid Omar, and KAF Investment Bank Bhd chief executive officer Rohaizad Ismail and deputy CEO Thariq Ahmad.

The company raised RM39.6 million from the sale of the new shares, out of which RM16 million has been earmarked to develop its Selinsing farm, RM6.5 million to construct a new seafood processing plant, and another RM6.1 million to buy equipment and motor vehicles.

SBH Marine will also utilise RM7.1 million for working capital requirements, and the remaining RM4 million to defray estimated listing expenses.

The offer-for-sale tranche grossed RM11 million, and proceeds will go entirely to the selling shareholders, including group managing director Tan Boo Nam and his son Tan Yuak Ming, who is the deputy managing director.

KAF Investment Bank Bhd is the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO.