Bestari Food gets regulatory clearance for Main Market flotation

Malaysia’s Securities Commission has cleared Bestari Food Bhd’s proposed Main Market listing on Bursa Malaysia Securities Bhd, the company said. Its IPO will combine approximately 77.1 million new ordinary shares with up to approximately 56.3 million existing ordinary shares offered for sale.

The offering represents up to 29.6 per cent of the company’s enlarged issued share base of 450.0 million. Bestari Food produces food premixes and supplies food ingredients alongside equipment used in food processing and production.

Institutional and selected investors are allocated up to 100 million shares. This includes Bumiputera investors with approval from the Ministry of Investment, Trade and Industry. The Malaysian public can subscribe for 22.5 million shares, while approximately 10.8 million are reserved for eligible directors, employees and others who have contributed to the group’s success.

Managing director Lai Kok Siong said funds raised through the new shares would go towards industrial land for a new production facility, machinery and equipment to increase capacity, marketing and promotional activities, and listing expenses. The planned facility would also allow the group to expand into ingredient processing and widen its product range, he said.

RHB Investment Bank Bhd will serve as principal adviser for the IPO, as well as its sole underwriter and sole placement agent.