Butterfield FB’s ACE Market IPO oversubscribed 18.67 times

KUCHING (September 7): Butterfield FB Bhd’s initial public offering (IPO) has been oversubscribed by 18.67 times under the public portion ahead of its listing on the ACE Market of Bursa Malaysia on Sept 15.

According to the coffee and tea extract powder blends manufacturer in a bourse filing on Friday, a total of 12,670 applications for 786.67 million new shares with a value of RM377.60 million were received from the Malaysian public for the 40 million new shares made available.

For the Bumiputera portion, a total of 7,773 applications for 439.61 million new shares were received, representing an oversubscription rate of 20.98 times.

For the public portion, a total of 4,897 applications for 347.06 million new shares were received, which represents an oversubscription rate of 16.35 times.

The 16 million new shares available for application by eligible persons have been fully subscribed.

The 100 million shares, comprising 94 million issue shares and six million offer shares, made available by way of private placement to Bumiputera investors approved by the Ministry of International Trade and Industry (MITI), have been fully placed out.

The 66 million new shares made available by way of private placement to selected investors have also been fully placed out.

On the private placement tranche, a total of 166 million shares have been allocated to 1,083 investors.

Butterfield FB’s IPO involves a public issuance of 150 new ordinary shares at RM0.48 per share, aiming to raise RM72 million.

It also involves an offer for sale of 72 million existing shares, equivalent to 9 per cent of its enlarged share capital.

Executive director and chief executive officer Lee Mong Khai said the response to its IPO reflects investor confidence in the group’s growth trajectory and operational capabilities.

“With the proceeds raised, we are well-positioned to accelerate our strategic growth plans, expand our Bukit Minyak premises, install our fourth manufacturing line, and continue to innovate and expand our product range to meet the evolving lifestyle and needs of our customers,” he said.

Lee added that the group has introduced a dedicated manufacturing for matcha powder blends with a production capacity of 312 tonnes annually, in line with growing market trends and the rising popularity of matcha.

He said the matcha powder blends manufacturing has commenced operations in February and the initiative reflects its commitment to diversifying our product portfolio and capturing growth opportunities in convenience-driven beverage markets.

“Moving forward, we will continue to enhance our product offerings, ensuring that we meet our customers’ evolving requirements and provide high-quality, consistent and convenient beverage solutions,” he said.

Upon listing, the group will have a market capitalisation of around RM384 million based on an enlarged share capital of 800 million shares at RM0.48 per share.

M&A Securities Sdn Bhd is the Principal Adviser, Sponsor, Underwriter and
Placement Agent for the IPO exercise.

ACE Market Bursa Malaysia Butterfield FB Bhd initial public offering