Khee San inks underwriting agreement for rights issue

KUALA LUMPUR: Candy confectionery manufacturer and distributor Khee San Bhd (KSB) has signed an underwriting agreement for its rights issue with M&A Securities Sdn Bhd as the principal advisor and Kenanga Investment Bank Bhd and Malacca Securities Sdn Bhd as managing underwriters.

The signing represents a significant step in KSB’s strategic plan to strengthen its financial position and enhance prospects for sustained growth.

As part of KSB’s Regularisation Plan, which was recently approved by Bursa Malaysia and KSB shareholders, the rights issue involves the issuance of up to 960.96 million shares and up to 549.12 million warrants on the basis of four warrants for every seven rights shares subscribed.

With the rights shares priced at 10 sen each, the exercise is expected to raise between RM65 million on a minimum subscription basis and RM96.1 million under the maximum scenario.

KSB executive chairman Yong Loong Chen said the signing of the underwriting agreement for the rights issue is a testament to stakeholders’ confidence in KSB’s recovery and growth potential.

“With seven consecutive quarters of profitable results and clear expansion plans, KSB is well-positioned to accelerate growth domestically and internationally, continuing our legacy, which spans over seven decades as a trusted Malaysian confectionery brand,“ he said.

KSB CEO Edward JP Tan said the signing reflects the company’s commitment to driving sustainable growth and strengthening its market position.

“We are focused on building resilience and seizing new opportunities locally and internationally. As we look ahead, KSB is poised for a dynamic phase of expansion and innovation, aligned with our vision to deliver quality and value across all our markets,“ he said.

The proceeds from the rights issue will be strategically invested to drive KSB’s growth trajectory across domestic and export markets.

KSB aims to use the funds to increase production capacity through new high-speed manufacturing lines, supporting rising demand and improving operational efficiency.

The group also intends to expand its reach in key international markets, including New Zealand, Mauritius, and Taiwan, strengthen its distribution network, and grow its portfolio to include new innovative products.

KSB’s Regularisation Plan charts a path to sustainable growth.

By solidifying its cash reserves, maintaining zero debt levels, accelerating market expansion and implementing an Employees’ Share Scheme to attract and retain talent, KSB is poised to enhance its profitability and regain financial resilience.

This comprehensive plan marks KSB’s commitment to long-term success in a competitive market.