Butterfield FB Signs Underwriting Deal Ahead of ACE Market IPO

Butterfield FB Berhad, a manufacturer of coffee and tea extract powder mixes, has taken a significant step towards its Initial Public Offering (IPO) on Bursa Malaysia's ACE Market. The company formalized its plans by signing an underwriting agreement with M & A Securities Sdn. Bhd., which will act as the principal advisor, sponsor, sole underwriter, and placement agent for the IPO.

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This milestone marks the beginning of a new chapter for BFB as we strive to drive growth and solidify our market position.

Lee Mong Khai, Executive Director and CEO of Butterfield FB, expressed optimism about the agreement, stating it brings the group closer to listing. He highlighted the company's readiness to capitalize on the increasing demand for convenient beverage solutions. As food and beverage manufacturers introduce more ready-to-drink and instant formats, the demand for customized coffee and tea powder mixes is expected to rise, supporting Butterfield FB's expansion and long-term prospects.

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We believe the group is well-positioned to capitalize on the growing demand for convenient beverage solutions.

The company intends to allocate a substantial portion of the IPO proceeds to enhance its production and storage capabilities at its Bukit Minyak facility. This includes installing a new production line, which is expected to boost efficiency and the capacity to serve both domestic and international clients. The expansion is crucial for meeting escalating demand and strengthening the company's market position.

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As food and beverage manufacturers continue to introduce new formats such as instant beverage mixes and ready-to-drink products, the demand for customized coffee and tea extract powder mixes is expected to continue to rise, thereby supporting our expansion plans and long-term prospects.

The IPO structure includes a public offering of 150 million new ordinary shares, representing 18.8% of the enlarged share capital. Additionally, 72 million existing shares will be offered through a private placement to approved bumiputera investors and other selected investors. M&A Securities will underwrite 56 million of the new shares. The company is slated for listing on the ACE Market by September 2026.

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This investment will enable BFB to meet increasing demand, improve operational efficiency, and strengthen our ability to serve customers both domestically and internationally.