Sarawak’s SCRB launches prospectus ahead of ACE Market listing

KUALA LUMPUR (Oct 28): Supreme Consolidated Resources Bhd (SCRB), a Sarawak-based fast moving consumer goods (FMCG) industry player listed on the LEAP Market, has unveiled its initial public offering (IPO) prospectus on Monday in conjunction with its transfer of listing from the LEAP Market to the ACE Market of Bursa Malaysia, scheduled for 29 November 2024.

With the growth potential, supported by the company’s competitive advantages and key strengths, SCRB aims to raise estimated gross proceeds of RM17.5 million via the issuance of 70 million new ordinary shares at an IPO price of RM0.25 per share.

Based on the group’s enlarged share capital of 430 million shares and the aforesaid IPO price, the market capitalisation will be approximately RM107.5 million.

The proceeds raised from the IPO will enable the Company to cater to the next phase of its business expansion. SCRB has earmarked 62.86 per cent of the proceeds to finance warehouse facility expansion; 22.86 per cent for working capital; and the remaining proceeds will be utilised for listing-related expenses.

The expansion of the company’s warehouse facility will serve as an additional distribution centre and is expected to cater to the expansion of SCRB’s products.

It will include a new warehousing area, cold storage facilities (freezer and chiller room), office, loading, and unloading bay.

Dato Richard Wee Liang Chiat, non-independent executive chairman of SCRB said, “Today is not merely a milestone; it stands as proof of about 40 years of dedication and commitment to excellence in the distribution and warehousing of third-party brands as well as our own in-house branded products, to serve as a reference and the platform to sustain and grow our business.

“We believe this will provide a larger platform for fundraising and access to capital for our growth plans. SCRB will focus on three key strategies: enhancing our product range, broadening our distribution network in Sarawak and Sabah, and increasing warehouse capacity to meet our Company’s growing needs.”

In conjunction with the launch, the application period of SCRB’s IPO will commence immediately and close on 15 November 2024 at 5pm.

Kenanga Investment Bank Berhad is the IPO’s principal adviser, sponsor, underwriter and placement agent.

SCRB provides market access and coverage for consumer products in Sarawak and Sabah, where it is principally involved in the distribution of third-party brands as well as the company’s brands of frozen and chilled food products, ambient food and beverages Products and Non-F&B Products.

Presently, SCRB has a total of two distribution centers equipped with warehousing facilities and cold storage facilities in Sarawak, located in Kuching and Miri to cater to the storage as well as distribution of various types of consumer products.