PETALING JAYA, Custom Food Holding Bhd is targeting a listing on the Main Market of Bursa Malaysia as part of its strategy to expand its operations and strengthen its market presence in the food ingredients sector.
The company specializes in the production of specialty food ingredients and products, including non-dairy creamers, functional lipid powders, malt, and cereal products. In addition, it sources and supplies a range of other food ingredients and products from third-party suppliers, catering to both domestic and international markets.
According to its prospectus exposure released yesterday, Custom Food’s initial public offering (IPO) will involve a public issue of 113.31 million new shares, alongside an offer for sale of up to 186.81 million existing shares. The IPO aims to raise capital to fund a range of strategic initiatives designed to support the company’s growth and operational efficiency.
Proceeds from the IPO will be directed towards the construction of a new factory, acquisition of new machinery and equipment, investment in information technology and automation systems, repayment of existing bank borrowings, working capital requirements, and expenses related to the listing process.
“The proposed factory will focus on the production of flavour and bakery enhancement products and will include a warehouse to support the expansion of our manufacturing capabilities. This initiative is expected to improve production capacity, enhance operational efficiency, and allow the group to better meet growing market demand,” the company said in the prospectus.
The planned IPO marks a significant milestone for Custom Food, reflecting its ambition to scale its operations, modernize facilities, and strengthen its position in the competitive food ingredients industry. By listing on the Main Market, the company aims to attract a broader base of investors while generating the necessary funds to drive its expansion plans and technological upgrades.
This move also aligns with Custom Food’s long-term vision of becoming a leading player in the specialty food ingredients sector, leveraging both its manufacturing expertise and strategic investments in innovation and automation to meet evolving consumer and industry demands.
Shares from the IPO are expected to offer investors an opportunity to participate in the company’s growth trajectory while contributing to the modernization and expansion of Malaysia’s food manufacturing capabilities.
