PT Resources aims to raise RM48.6m from IPO

The proceed will be used to finance capex, working capital requirements and the defray of estimated listing expenses

by SHAFIQQUL ALIFF / pic TMR

PT RESOURCES Holdings Bhd aims to raise RM48.6 million from its IPO through its listing on the ACE Market of Bursa Malaysia for the expansion of its footprint.

The company, which is involved in the processing and trading of frozen seafood products and retail trading of meat and non-meat product, plan to use RM17.6 million to finance the capital expenditure (capex) for a new cold storage warehouse in Kuantan, Pahang, which expected to complete in three years.

PT Resources MD Heng Chang Hooi said the 28,392 sq ft warehouse, equipped with six cold rooms, would increase its storage capacity for frozen seafood supplies and products, chilled and frozen meat as well fruits and vegetable to 4,000 tonnes compared to the current capacity of 700 tonnes.

He said another RM27.2 million will be utilised for working capital requirements, specifically the purchase of raw material, which mainly comprises fresh and frozen seafood, and meat products, and to support the expected growth of its business.

Heng said the remainder of the will be used to defray the estimated listing expenses.

“The IPO will enable us to take advantage of the growing frozen seafood by expanding our capacity to store and produce high-quality frozen seafood products to serve rising customer demand in the local and international markets.

“We will continue to strive to compete at the next level as there are still a lot of growth opportunities out there and the world is still our oyster,” he said.

Heng said the distribution rate for the overseas market would increase in the future as the company also planned to expand its footprint to more countries in the Asia Pacific and the Middle East.

“In light of the positive prospect in both regions, we see a pool of opportunities to expand our geographical presence in these markets. We have laid out several initiatives that will be implemented in the coming days as we seek to expand our business.

“We are currently identifying suitable sellers on the online marketplace to be our distributors. Barring any unforeseen circumstances, we intend to finalise the appointment of distributors by the end of 2023,” Heng added.