Sik Cheong Berhad has entered into an underwriting agreement with TA Securities Holdings Berhad in conjunction with its upcoming initial public offering (“IPO”) on the ACE Market of Bursa Malaysia Securities Berhad.
The IPO exercise comprises a public issuance of 66.0 million new ordinary shares, representing 24.8% of its enlarged share capital, and an offer for sale of 20.0 million existing shares, or 7.5% of its enlarged share capital, via private placement to selected investors.
Out of the 66.0 million new shares, 13.3 million shares will be made available to the Malaysian Public through balloting, 4.0 million shares to its eligible Directors, employees and persons who have contributed to the success of Sik Cheong (“Pink Form Allocations”), while the remaining 48.7 million shares are reserved to private placement to selected investors.
Pursuant to the underwriting agreement, TA Securities shall underwrite 17.3 million new shares made available to the Malaysian Public and Pink Form Allocations.
The RBD palm olein oil products company plans to strategically expand its product range to include high oleic soybean oil. Featuring a mild and neutral flavour, it is versatile for various cooking methods and meets the market demand for healthier edible oils, all while remaining a cost-effective choice. As for geographical expansion, it intends to increase its reach beyond Kuala Lumpur and Selangor to neighbouring states such as Perak, Negeri Sembilan, Melaka, and Pahang, aiming to capture a larger market share for the distribution of the Group’s products.
Sik Cheong is scheduled to be listed on the ACE Market of Bursa Securities by third quarter of 2024, with TA Securities as the Principal Adviser, Sponsor, sole Underwriter and Placement Agent for the IPO Exercise.
