HSS Holdings Bhd, a bakery products company, has signed an underwriting agreement with M&A Securities Sdn Bhd in preparation for its initial public offering (IPO) on the ACE Market of Bursa Malaysia, the group said.
The IPO involves a public issue of 75 million new shares and an offer for sale of 52.5 million existing shares.
From left: Goh Chen Ann, Executive Director of HSS Holdings; Goh Chen Chang, Managing Director; Datuk Bill Tan, Executive Director of M & A Securities; and Gary Ting, Head, Corporate Finance.
Of the new shares, 25 million will be offered to the Malaysian public, while 10 million are allocated to eligible persons. Another 10 million shares will be placed with Bumiputera investors approved by the Ministry of Investment, Trade and Industry, and 30 million shares will be offered to selected investors.
M&A Securities will underwrite 35 million shares allocated to the Malaysian public and eligible applicants.
Proceeds from the IPO will be used for capital expenditure, borrowings repayment, working capital, and listing expenses. Planned investments include a new biscuit production line, automation of biscuit and cookie production processes, and a new automated cake production line to improve efficiency, expand capacity, and broaden product offerings.
Managing director Goh Chen Chang said the IPO will strengthen the company’s manufacturing capabilities, improve operational efficiency, and support future growth as the group expands its product portfolio and brands.
HSS currently operates a wide distribution network consisting of about 332 wholesalers, five distributors, and 112 retailers.
