Tentative Date(s):

• Opening of application - 28 October 2024 ​
• Closing of application - 15 November 2024
• Balloting of applications - 19 November 2024
• Allotment of IPO shares to successful applicants - 26 November 2024
• Tentative listing date - 29 November 2024

​

Company Background

The company was incorporated in Malaysia under the Companies Act 1965 (now repealed by the Act) as a private limited company on 11 July 2016 under the name of Supreme Consolidated Resources Sdn Bhd, as an investment holding company and the listing vehicle for the company to facilitate the LEAP Market listing. On 10 July 2018, the company was converted into a public limited company and assumed their present name. The company has been listed on the LEAP Market of Bursa Securities since 16 January 2019. Through its subsidiaries they are principally involved in the distribution of third-party brands as well as their own brands of Frozen and Chilled Food Products, Ambient F&B Products as well as Non-F&B Products.

As at the LPD, the structure of the company Group is as follows:

Use of proceeds

1. Expansion of warehouse facility - 62.86% (within 36 months)
2. Working capital - 22.86% (within 24 months)
3. Estimated listing expenses - 14.28% (Immediate)

Expansion of warehouse facility - 62.86% (within 36 months)

The company has allocated RM11.00 million representing 62.86% of the gross proceeds from the Public Issue for the expansion of warehouse facility that will serve as an additional distribution centre for the company Group and is expected to cater for the expansion of the company Group’s products.

The company has estimated the total cost for the expansion of warehouse facility to be approximately RM18.00 million comprising acquisition of the new industrial land to be approximately RM2.50 million and the construction cost to be approximately RM15.50 million. Since only RM11.00 million of the gross proceeds from the Public Issue will be allocated for the expansion of warehouse facility, the company Group will finance the difference of RM7.00 million between the gross proceeds from the Public Issue and the total cost for the expansion of warehouse facility via bank facilities and / or internally generated funds.

The proportion of bank facilities and / or internally generated funds will be dependent on the existing financing capacity and cash and bank balances at the point of utilisation, which the company Group is unable to determine at this juncture. In the event the actual proceeds utilised for the expansion of warehouse facility is lower than the allocation of RM11.00 million from the gross proceeds of the Public Issue, the excess will be used for the company Group’s working capital requirements.

Details of the costs involved for the expansion of warehouse facility are as follows:

The company intends to complete the acquisition of the new industrial land within 12 months from the completion of its Listing and subsequently complete the construction of the warehouse facility within 24 months from the acquisition of the new industrial land.

Working capital - 22.86% (within 24 months)

The company has allocated RM4.00 million representing 22.86% of the gross proceeds from the Public Issue for the day-to-day operations of the company Group, including but not limited to, staff-related expenses, payments to suppliers and general expenses (such as utilities charges and repair & maintenance). The proposed allocation of the proceeds for the working capital requirements is set out below:

Business Model

The company business model is as illustrated below:

Click here to continue the IPO - Supreme Consolidated Resources Berhad (Part 2)

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