MYMBN launched the prospectus of its IPO on ACE Market

MYMBN launched the prospectus of its IPO on ACE Market

KUALA LUMPUR (June 30): ACE Market-bound MYMBN Bhd expects to raise RM20.58 million in proceeds from a public issue of 98 million new shares at an issue price of 21 sen each.

The Melaka-based company is the first bird's nest processor to list on the Ace Market of Bursa Malaysia. It said the initial public offering (IPO) exercise will enable MYMBN to take advantage of the growing demand for edible bird's nest (EBN) in both local and international markets, and increase its raw unclean edible bird's nest (RUCEBN) processing capacity, the company said at at its IPO prospectus launch on Friday (June 30).

As the demand for EBN is growing locally and internationally, we see this as an opportunity for MYMBN to capitalise on. With our expertise honed, and the combined experience of the management team, the IPO proceeds will help us to propel to new heights, said Chief Executive Officer (CEO) Lavernt Chen.

According to the company, 19.3 million shares are available for subscription by the Malaysian public, followed by 18.68 million shares for eligible directors, employees and subsidiaries of MYMBN, and 60.02 million shares for selected investors.

The company is scheduled to make its debut on Bursa Malaysia Securities on July 25. He added that of the total proceeds raised, RM8.05 million has been earmarked for business expansion. It allocated RM6.6 million to finance additional purchases of RUCEBN, RM1.68 million for establishing three bird's nests collection centres in Sabah and Sarawak, while RM1.25 million is allocated for the expansion of processing and sale of raw clean edible bird's nest (RCEBN). The remaining RM3 million is for listing expenses.

These centres will enable our group to increase our physical presence in East Malaysia where we would like to source additional raw bird's nests, in light of our expansion plan into the processing and sale of RCEBN.

Another RM6.6 million has been allocated for the purchase of raw bird’s nests for RUCEBN, RM2.05 million for working capital, and the remaining RM3 million to defray listing expenses. Chen added that the company is investing RM1.25 million in the expansion of the distribution for all the RCEBN segments through acquisition of an identified company in China.

This would allow us to export RUCEBN directly into China without relying on other approved importers, he said. Chen added the company is also looking into strengthening its downstream business by formulating bird's nest products for both local and international markets such as halal ready-to-drink bird's nest beverages.

(Source: TheEdgeMalaysia)