Enest Group Eyes RM15.11 Mln IPO Proceeds To Repay Debt, Fund Operations
KUALA LUMPUR, June 26 (Bernama) -- LEAP Market-listed Enest Group Bhd aims to raise RM15.11 million from its initial public offering (IPO) as part of its transfer to the ACE Market of Bursa Malaysia Securities Bhd.
Most of the proceeds will be allocated for repaying bank borrowings, supporting working capital, and covering listing expenses.
Its chief financial officer, Christopher Tan Yew Leong, said the bank borrowings were mainly used to finance the acquisition of two factory properties in Sepang and Kajang, Selangor, which are classified as investment properties.
He said the group is also strengthening its growth trajectory by developing a new Kajang facility for in-house manufacturing of bottled bird’s nest products and other health beverages, with an annual capacity of approximately 300,000 bottles.
“We have acquired two factories as part of our expansion plans. One facility in Sepang will support our raw unclean bird’s nest (RUBN) trading business. At the same time, a new RM12 million factory in Kajang will process edible bird’s nests and manufacture bottled bird’s nest products,” said Tan at the group’s prospectus launch held in conjunction with its listing on the ACE Market here today.
He said construction of the Kajang facility is expected to be completed in 2027, with full operations anticipated by late 2028 or the second quarter of 2029, following the necessary approvals from China’s General Administration of Customs (GACC) for exports to China.
Tan said that Enest is also looking to broaden its customer base in China, including distributors and buyers in the health and wellness segment, while expanding its exports of RUBN to the Chinese market.
Based on the IPO price of 13 sen per share, the expected RM15.11 million proceeds will be utilised as follows: RM5 million for the repayment of bank borrowings; RM6.41 million for working capital and RM3.70 million for the defrayment of listing expenses.
The IPO comprises a public issue of 116.25 million new ordinary shares, representing 20.0 per cent of the group’s enlarged issued share capital of 581.25 million shares, as well as an offer for sale of 15.05 million existing shares, representing approximately 2.6 per cent of the enlarged issued share capital.
Enest chief operating officer Lok Chyi Yeu said the group is continuously applying to increase its export quota to China to support growth, noting that its current quota stands at about 18 tonnes, with an additional increase of around two tonnes expected this year, which would raise total export capacity to about 20 tonnes.
He said bird’s nest exports to China are subject to quota approvals and regulatory audits by the Chinese authorities, and the group is actively working with regulators to secure higher allocation over time.
Lok mentioned that the group is expanding its presence not only in China but also in the domestic market through RUBN trading and various downstream activities. He clarified that their operations in China primarily focus on import and distribution through local partners and wholesalers, rather than managing physical retail stores.
He noted that the group’s operations are not directly impacted by geopolitical tensions as it relies on air freight and has long-term agreements with logistics partners, allowing it to manage and stabilise logistics costs.
The IPO opens for subscription today and closes on July 2, 2026, with the company slated for listing on the ACE Market on July 15, 2026.
M&A Securities Sdn Bhd is the adviser, sponsor, underwriter, and placement agent for the IPO.
-- BERNAMA