Ocean Fresh shares more than double on ACE Market debut

KUALA LUMPUR (July 4): Shares of Ocean Fresh Bhd (KL:OFB) more than doubled in its trading debut on the ACE Market after the frozen seafood company raised RM14.01 million from its initial public offering (IPO) on the back of strong demand.

Ocean Fresh opened at 85 sen versus its IPO price of 28 sen apiece. The stock climbed to as high as 93 sen and was trading at 85.5 sen at 9.15am, valuing the company at RM179 million on Bursa Malaysia. More than 47 million shares changed hands.

The company’s IPO saw its public tranche oversubscribed by 76.22 times. The Bumiputera portion was oversubscribed by 65.68 times, while the remaining public portion was oversubscribed by 86.75 times.

Shares set aside for eligible persons and select investors offered through private placement were fully taken up.

At its IPO price of 28 sen, the company was valued at RM58.84 million, or about eight times its 2023 earnings.

Ocean Fresh is principally involved in the processing and trading of frozen seafood products, as well as the provision of frozen seafood processing services to its customers in Malaysia, Türkiye, China, Thailand, Vietnam and Japan.

The company said it will utilise more than half of the proceeds, or RM8 million, for its new cold storage facility in Kuantan, Pahang. The company has also budgeted RM2.51 million for working capital requirements and will spend RM3.5 million on estimated listing expenses.

KAF Investment Bank is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.

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