KUALA LUMPUR, Custom Food Holding Bhd, a specialty food ingredient manufacturer backed by private equity firm Creador, has filed a draft prospectus for an initial public offering (IPO) on the Main Market of Bursa Malaysia.
The IPO is aimed at funding the construction of a new manufacturing facility, repaying borrowings, and supporting working capital needs. Creador, which has backed notable listings such as CTOS Digital Bhd in 2020, Mr DIY Group (M) Bhd in 2021, and Eco-Shop Marketing Bhd in May this year, currently holds an effective 16.7% stake in Custom Food.
The proposed listing involves a public issue of 113.31 million new shares (11.1% of enlarged issued shares) and an offer for sale of 186.81 million existing shares (18.3%), bringing the total public float to 29.4%.
For the retail portion, 30.62 million shares will be offered, comprising 20.42 million shares for the Malaysian public and 10.21 million for eligible persons. Meanwhile, 269.5 million shares will be allocated under the institutional offering.
Proceeds from the sale of the existing shares will go to Oriental Concept Sdn Bhd (OCSB) and Sabroso Group Sdn Bhd (SGSB). Following the IPO, OCSB’s stake will drop to 61.21% from 80% (assuming full exercise of the overallotment option), while SGSB’s stake will decline to 4.98% from 20%.
OCSB is controlled by managing director Datuk Saw Beng Liang, his brother Saw Benson, and their father Saw Ee Chee. SGSB is controlled by Polvere Group Sdn Bhd, an indirect 83.5% subsidiary of Creador V LP.
Custom Food specialises in producing non-dairy creamers, functional lipid powders, and malt and cereal products, operating manufacturing facilities in Kulim, Kedah, and Perai, Penang.
For the financial year ended Dec 31, 2024 (FY2024), the company posted a net profit of RM42.07 million on revenue of RM394.86 million, translating to a profit margin of 10.65%, up from 8.77% in FY2023 and 9.4% in FY2022. RHB Bank is the sole principal adviser, bookrunner, and underwriter for the IPO.
