KUALA LUMPUR: Malacca-based food products distributor and retailer and flavouring products manufacturer Guan Huat Seng Holdings Bhd (GHS Holdings) is channelling part of proceeds from its upcoming initial public offering (IPO) towards the construction of an integrated complex in the state.
The new complex will provide additional storage space, a food-processing facility, a product development facility, product showroom and administrative office.
The company is also constructing a three-storey facility in Krubong in Malacca, which will expand production and storage capacity.
Managing director Yeo Tien Ee said these initiatives are expected to improve GHS Holdings’ operational efficiency and support future growth.
“We remain focused on expanding our product offerings, strengthening relationships with existing customers, and exploring new market opportunities within and beyond Malaysia. Our growth strategy is grounded in discipline, practicality, and a clear understanding of our strengths within Malaysia’s distributive trade of food and beverage product industry,” he said during the company’s IPO prospectus launch today.
GHS Holdings is expected to raise RM30 million by issuing 120 million new shares at an issue price of 25 sen per share.
GHS Holdings will allocate RM12 million from the proceeds to part-finance the integrated complex, RM9 million to part-finance the Krubong facility, RM3 million for working capital, RM1.5 million for marketing expenses and RM4.5 million for estimated listing expenses.
According to the GHS Holdings’ prospectus, the company aims to commence construction of the integrated complex in the fourth quarter of this year and completion is targeted by the third quarter of 2028.
As for the Krubong facility, the company will commence construction in the second quarter of 2027 and targets to complete it by the fourth quarter of 2028.
The integrated complex will facilitate the distribution of food products and expand into food-processing operations for seafood products. It will also house a product showroom, an administrative office and a product development facility.
The product showroom is designed to facilitate bulk sales to the company’s reseller and food service operator customer base. It will also serve as a reference point to demonstrate the company’s capabilities to existing and potential customers.
The Krubong facility will mainly focus on the manufacturing of flavouring products and will be supported by a warehouse facility for the storage of goods.
Each of these two facilities will include a dedicated space for the storage of goods and materials to support the distribution and retail segments.
“The launch of our prospectus represents a significant milestone in our transformation from a traditional food retailer into a diversified distributor and retailer of food products, with in-house manufacturing capabilities. The IPO will enable us to accelerate our expansion plans, increase production and storage capacity through our new facilities in Melaka, and strengthen our presence in both distribution and retail segments,” Yeo said.
En route to listing on the ACE Market of Bursa Malaysia, GHS Holdings is undertaking a public issue of 120 million new shares, alongside an offer-for-sale of 21 million existing shares, at an IPO price of 25 sen per share.
Upon listing, GHS Holdings will have a market capitalisation of about RM118.38 million.
TA Securities Holdings Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.
Since commencing operations in 1979, GHS Holdings has built an established track record of about 46 years, and has grown into a distributor and retailer of food products, supported by in-house manufacturing of flavouring products, offering a diverse range of products sold under its own brands such as Heng’s, Makbest, SunCity and OceanStars and third-party brands, as well as unbranded products.
The group has established a broad customer base comprising wholesalers, retailers, food service operators, consumers, and food manufacturers.
Leveraging its track record and established customer base, the group is well-positioned to scale operations, expand its product offerings enter untapped domestic and international markets, and potentially diversify into complementary product areas.
