Ocean Fresh Bhd (KL:OFB) shares more than doubled in their debut on the ACE Market, after the frozen seafood company generated RM14.01 million from its initial public offering (IPO) due to strong demand. Ocean Fresh shares began trading at 85 sen, up from 28 sen at the IPO. The shares rose to 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 exchanged hands.
The company’s IPO saw its public tranche oversubscribed by 76.22 times. The Bumiputera component was oversubscribed 65.68 times, but the remaining public share was oversubscribed 86.75 times. Shares reserved for eligible individuals and select investors provided through private placement were fully subscribed. At its IPO price of 28 sen, the company was valued at RM58.84 million, or around eight times its 2023 earnings.
Ocean Fresh specializes in the processing and trade of frozen seafood products, as well as providing frozen seafood processing services to customers in Malaysia, Turkey, China, Thailand, Vietnam, and Japan.
The company claimed it will use more than half of the earnings, or RM8 million, to build a new cold storage facility in Kuantan, Pahang. The company has also allocated RM2.51 million for working capital needs and RM3.5 million for projected listing costs.
KAF Investment Bank is the primary adviser, sponsor, underwriter, and placement agent for the IPO.
Ocean Fresh wholesales, retails, processes, and exports frozen fish products. We prepare and sell molluscs (cuttlefish, squid, octopus, and ark shell meat), fish (tuna, mackerel, bonito, ribbonfish, leatherjacket, and pomfret), and other frozen seafood items (prawn, abalone, and sea cucumber).
