Managing director Heng Chang Hooi said that from the proceeds, RM17.6 million would be allocated to finance the capital expenditure for a new cold storage warehouse.
He said a further RM27.2 million would be set aside for working capital expenditure, specifically the purchase of raw materials which mainly comprises fresh and frozen seafood and meat products, while the remainder of the proceeds would be utilised to defray the listing expenses.
“The IPO proceeds will enable PT Resources to take advantage of the growing frozen seafood market by expanding our capacity to store and produce high quality products to serve rising customer demand in the local and international markets,” he said at the launch of the company’s IPO prospectus today.
Heng said in a press conference later that the new cold storage warehouse would be set up in Kuantan and would increase PT Resources’ storage capacity from the current 700 tonnes to 4,000 tonnes upon completion within the next 36 months.
He said the planned 28,392 sq ft warehouse would have six cold rooms to store frozen seafood supplies and products, chilled and frozen meat, fruits and vegetables in different temperature ranges, an anteroom and five loading/unloading bays as well as a three-storey office building.
He said the distribution rate for overseas market would increase in the future as the company also planned to expand its international footprint to more countries in Asia Pacific and the Middle East, especially the United Arab Emirates, Qatar and Abu Dhabi.
“In light of the positive prospects in the Asia Pacific and the Middle East, we see ‘a pool of opportunities’ to expand our geographical presence in these markets,” he said.
For the current financial year, 44.4% of the total production were for the Malaysia market, while Saudi Arabia accounted for 12.2%, China had 44.2% and others 0.8%.
Heng noted that PT Resources planned to open up an additional three MO Foodmart outlets by end-2023, prioritising the expansion of outlets in the east coast of Peninsular Malaysia.
Based on an issue price of 36 sen per share, PT Resources will have a market capitalisation of RM192.6 million upon listing.
Applications for PT Resources’ IPO are open today until Sept 12.