SBH MARINE MAKES DEBUT ON ACE MARKET AT 25.5 SEN

KUALA LUMPUR, April 8 (Bernama) -- SBH Marine Holdings Bhd made its debut on the ACE Market of Bursa Malaysia at 25.5 sen, giving a premium of 3.5 sen over its initial public offering price of 22 sen.

At 9 am, the counter saw 216.6 million shares changing hands.

Upon listing, the company's market capitalisation stands at RM195 million with an enlarged share capital of 888 million shares.

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Executive director Saw Leng Hean said the frozen food exporter company is optimistic about the frozen food industry as it is not affected by inflation, which presents an opportunity for the company to grow.

"Even during the Covid-19 pandemic a few years back, we were affected, but our sales continued to grow. This shows that people are now looking for healthier protein choices, especially in marine protein," he told a press conference at the listing ceremony here today.

Saw also stated that SBH Marine aimed to focus on the premium market segment, catering to discerning consumers to ensure its long-term sustainability.

He said that this strategy would enable the company to achieve higher margins as it avoids direct competition with neighbouring countries.

“As we all know, our surrounding neighbours, we talk about Vietnam, Indonesia, Thailand, India, everyone is targeting the commodity market, which is a low-price item. We are targeting the premium price product.

“Our products are going to the higher level of the consumer. Therefore, it is also very sustainable and the demand has always been there," he added.

Commenting on the Red Sea crisis, Saw said it was not an issue for the group because its sales are diversified and extend to Asian countries as well.

“Shipments to European countries and the Middle East have been affected by disruptions in shipping routes and other factors.

“Therefore, shipping rates have increased. However, we will also be able to offset the rise in shipping rates or shipping costs by declining, in the sense that Europeans engage in more exports and imports, which contributes not only to us but also to the global market," he said.

In a statement, SBH Marine said it has successfully raised a total of RM39.6 million through the public issue of 180.0 million new ordinary shares.

“From this gross amount, more than 70 per cent will be utilised for business expansion with 40.4 per cent or RM16.0 million channelled for the development of Selinsing shrimp farm, 16.4 per cent or RM6.5 million for the construction of its second seafood processing plant and another 15.4 per cent or RM6.1 million for purchase of machinery or equipment and motor vehicles. 

“The remaining proceeds of RM7.0 million and RM4.0 million have been earmarked for working capital and listing expenses respectively,” it added.

-- BERNAMA