ACE Market-Bound HSS Holdings To Raise RM13.5 Mln From IPO
KUALA LUMPUR, May 29 (Bernama) -- Bakery products manufacturer HSS Holdings Bhd, en route to a listing on Bursa Malaysia’s ACE Market, aims to raise RM13.5 million through its initial public offering (IPO).
The company said the IPO comprises a public issue of 75 million new shares and an offer for sale of 52.5 million existing shares, priced at 18 sen per share. The listing is scheduled for June 23, 2026.
Of the total proceeds, RM2.57 million will be utilised for capital expenditure for the group’s manufacturing facilities; RM4.50 million for the repayment of bank borrowings; RM2.93 million for working capital; and RM3.50 million for the defrayment of listing expenses, it said in a statement.
Commenting on the expansion plan, HSS production director Joshua Lau Ern Tien said the group intends to expand its automation machinery ahead of Dec 31, 2030, in line with the incentive announced by Prime Minister Datuk Seri Anwar Ibrahim during the tabling of Budget 2026 last year.
Under Budget 2026, existing companies undertaking expansion projects will be entitled to a 100 per cent income tax exemption for five years, with the application period extended until Dec 31, 2030.
"We are expanding both our manufacturing facilities with more automated lines...this is going to help us to increase more than double of our current capacity.
"Currently, our utilisation rate averages about 70 per cent and we hope to increase this further," he told a press conference after the company's prospectus launch here, today.
HSS is principally involved in the sourcing of bakery products, trading of bakery and other products, as well as the manufacturing of bakery products.
With business roots dating back to 2004, the group has built more than 20 years of operating experience in the bakery products market and established a broad market presence through its extensive network of wholesalers, distributors and retailers, offering more than 6,000 products across bakeries and other products.
Lau also said the company plans to venture into the e-commerce segment by fourth quarter of this year to enhance brand awareness as it currently relies on wholesalers, retailers and distributors for its sales channels.
Today, HSS’s network comprises 330 wholesalers, 117 retailers and five distributors in Malaysia, Singapore, Indonesia, Australia, Cambodia, and South Korea.
"This is part of our plan for the brand's awareness as the younger generation are more active online. We want people to know that we are still very active in the market," he said.
Upon listing, HSS will have a market capitalisation of RM90 million, based on the IPO price of 18 sen per share, with an enlarged issued share capital of 500 million shares.
M & A Securities Sdn Bhd is the principal adviser, sponsor, underwriter, and placement agent for the IPO.
-- BERNAMA