Company Background

The Company was incorporated in Malaysia under the Act on 22 May 2023 as a private limited company under the name of Ocean Fresh Sdn. Bhd. Subsequently, the Company was converted into a public limited company and assumed our present name on 29 August 2023.

The Company is an investment holding company and through the wholly-owned subsidiaries, the Group is principally involved in the processing and trading of frozen seafood products. In addition, the company is also involved in the provision of frozen seafood processing services.

The group structure upon the completion of the Acquisitions is as follows:

Use of proceeds

1. Capital expenditure for a new cold storage facility - 57.09% (within 24 months)
2. Working capital requirements - 17.94% (within 24 months)
3. Estimated listing expenses - 24.97% (Immediate)

Capital expenditure for a new cold storage facility - 57.09% (within 24 months)

As part of the Group’s business expansion plan, the company intends to utilise RM8.00 million of the gross proceeds from its Public Issue to part finance the construction of a new cold storage facility on PSFD Land 1, where OFS Products had procured a use permit up to 31 December 2024 from PSFD. The use permit enables OFS Products to utilise the subject land for conducting its business operations, subject to periodic renewal.

A breakdown of the estimated construction costs for the new cold storage facility based on a contractor’s quotation procured is as follows:

In view of the Processing Facility is also limited and constraint by the volume of products that can be stored at the cold rooms, which is currently near full utilisation rate, the new cold storage facility upon completion will certainly increase the cold room storage space and thereby cater for its business growth. The company intends to grow the exports of frozen seafood products to international markets, particularly China as well as to venture into the processing and trading of dried seafood products. As such, they expect that they will be required to store a higher volume of seafood supplies and frozen seafood products, and thus, would require a larger cold room storage space.

Working capital requirements - 17.94% (within 24 months)

The company intends to utilise RM2.51 million from the gross proceeds from its Public Issue for the purchase of raw materials, which comprise fresh and frozen seafood. The purchase of raw materials accounted for approximately 92.44% to 93.72% of the Group’s total cost of sales during the Financial Years Under Review. The breakdown of each type of raw materials cannot be determined at this juncture as it depends on the customers’ orders and availability of raw materials at the relevant point of time.

Business model

The Company is principally an investment holding company and through its subsidiaries, we are principally involved in the processing and trading of frozen seafood products. In addition, we are also involved in the provision of frozen seafood processing services. Our business model is summarised in the diagram below:

The principal activities can be segmented as follows:

1. Processing and trading of frozen seafood products

The company process and trade frozen seafood products in bulk, and the customers comprise local and international wholesalers and processing facilities, retailers, importers, F&B service providers and walk-in customers. The company processes and trades frozen seafood products based on the orders placed by these customers for the required volume, type and specifications of frozen seafood products. The company earns a margin from the sale of frozen seafood products.

2. Provision of frozen seafood processing services

At times, the company can also be engaged to provide frozen seafood processing services. In such instances, the company processes frozen seafood products based on these customers’ requirements, in terms of volume, type and specifications of frozen seafood products. The customers for this segment are typically local and international wholesalers and processing facilities as well as importers. The company earns a service fee from providing frozen seafood processing services.

Click here to continue the IPO - Ocean Fresh Bhd (Part 2)​​​

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