Supreme Consolidated Resources Bhd (“SCRB” or “Company”), a Sarawak-based Fast Moving Consumer Goods (“FMCG”) industry player listed on the LEAP Market, has taken a significant step in its initial public offering (“IPO”) journey by signing an underwriting agreement with Kenanga Investment Bank Berhad (“Kenanga”) in conjunction with its listing on the ACE Market on Bursa Malaysia Securities Berhad (“Bursa Securities”).

The IPO shall entail a public issuance of 70,000,000 new shares of SCRB (“IPO Shares”); whereby Kenanga will underwrite 16,250,000 IPO Shares; which comprises 8,600,000 IPO Shares representing the portion made available to the Malaysian public via balloting and 7,650,000 IPO Shares to be allocated to eligible directors, key senior management, employees as well as business associates of SCRB and its subsidiaries.

The remaining 53,750,000 IPO Shares will be allocated by way of private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry.

SCRB provides market access and coverage for consumer products in Sarawak and Sabah, where it is principally involved in the distribution of Frozen and Chilled Food Products, Ambient F&B Products and Non-F&B Products.

According to SCRB, proceeds from the IPO will be utilised to partly finance the expansion of a warehouse facility that will serve as an additional distribution centre to cater to the expansion of SCRB’s products. The remaining proceeds will be used for working capital and defray the listing expenses.

Dato Richard Wee Liang Chiat, Non-Independent Executive Chairman of SCRB said, “The signing of the underwriting agreement signifies a new chapter in our journey, as we transition from the LEAP Market to the ACE Market, aligning with the ACE Market’s criteria, our company’s current scale and growth trajectory. The transition is expected to boost our liquidity through a wider investor base, enhance our company’s visibility and draw in new partners. Additionally, we believe that it will also grant us a much larger platform for raising funds, giving us access to extra capital that will facilitate our expansion plans and support investments in strategic projects.”

Datuk Roslan Hj Tik, Executive Director, Head of Group Investment Banking and Islamic Banking of Kenanga Investment Bank Berhad stated, “We are excited to support SCRB as it takes this significant step from the LEAP to the ACE Market as it will enhance its market presence and achieve its growth ambitions. We look forward to a successful relisting and continued collaboration on their journey ahead."

SCRB is expected to be listed on the ACE Market of Bursa Securities in the fourth quarter of 2024. Kenanga is the Principal Adviser, Sponsor, Underwriter and Placement Agent.

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