Frozen seafood processor PT Resources signs underwriting agreement with Mercury Securities for ACE Market IPO
KUALA LUMPUR (Aug 3): PT Resources Holdings Bhd has inked an underwriting agreement with Mercury Securities Sdn Bhd, in conjunction with its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd.
The frozen seafood processor said the IPO involves the public issue of 40.13 million new shares and that it aims to launch its prospectus in the third quarter of the year.
PT Resources Managing Director Heng Chang Hooi said the high and resilient demand for seafood, which is an essential component of a healthy diet, puts the group in a strong position to pursue sustainable growth, not just locally, but also internationally.
“According to the Independent Market Research Report, the average seafood consumption in Asia Pacific was the highest in the world at 33.9kg per capita.
“While the per capita seafood consumption in the Middle East is relatively lower than the global average of 19.2 kg per capita, the Middle East imports relatively higher volumes of frozen seafood than other countries within the region.
“We thus recognise that these markets will continue to present opportunities for us to tap into, and we intend to continue growing our exports to these markets,” Heng shared.
Meanwhile, to facilitate its expansion, PT Resources has proposed to utilize its IPO proceeds to finance the group’s capital expenditure for a new cold storage warehouse, as well as working capital for the purchase of raw materials, which mainly comprise of fresh and frozen seafood and meat products.
“We are excited to enter the next phase of our business growth and the signing of the Underwriting Agreement brings us one step closer to our goal of an IPO to facilitate the Group’s expansion by financing the specific strategies and opportunities that we have identified, such as growing our presence in the international markets and widening our local retail network through a licensing business model,” Heng said.
PT Resources is principally involved in the processing and trading of frozen seafood products, as well as retail trading of chilled and frozen meat, and non-meat products.
Its frozen seafood products are sold to both local and international markets, particularly countries in the Asia Pacific and the Middle East.