RT Pastry Debuts on ACE Market at 17.5 Sen

RT Pastry Holdings Berhad made its debut on the ACE Market of Bursa Malaysia Securities Berhad at 17.5 sen, a marginal drop from its initial public offering (IPO) price of 18 sen. The stock experienced minor fluctuations in early trading, moving between 16.5 sen and 18 sen. By 9:15 AM, shares were trading at 17 sen, down approximately six percent from the IPO price, with over 16 million shares changing hands.

RT Pastry Group's Executive Director and CEO, Lu Chun-Neng, acknowledged that the early trading price was influenced by broader market sentiment weakness. However, he highlighted the listing as a significant achievement in the company's 23-year history, enabling it to expand its retail network beyond the Klang Valley. The funds raised from the IPO will provide the necessary resources to enhance production capacity at its Seri Kembangan and Shah Alam factories through automation, driving operational efficiency.

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However, this listing is an important achievement in the company's 23-year history to expand its retail network beyond existing markets in the Klang Valley.

The IPO successfully raised RM16.48 million in gross proceeds from the issuance of 91.54 million new shares. Of this amount, RM7.63 million is allocated for opening 14 new retail outlets and two larger-scale outlets between 2026 and 2029. An additional RM0.90 million will be used for acquiring new machinery to automate production lines. The company also plans to allocate RM3.82 million for bank loan repayments within six months, with the remaining RM4.13 million covering listing expenses.

For the financial year ending December 31, 2025, RT Pastry achieved fiscal stability with RM60.31 million in revenue, RM21.33 million in gross profit, and a net profit after tax (PAT) of approximately RM5.26 million. This balanced performance was driven by steady demand across its core product lines, with bread products contributing RM28.59 million (47.40%) and pastry products generating RM27.80 million (46.08%) of the total revenue. To ensure sustainable growth, the company aims to reduce its reliance on manual labor and expand its wholesale segment as an original equipment manufacturer (OEM) for retail chains and food providers. RT Pastry is also planning to acquire light industrial land in Seri Kembangan, Kajang, Balakong, or Semenyih to build a new manufacturing facility of 60,000 to 80,000 square feet, funded by a mix of bank loans and internal funds.

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The funds raised from this IPO will provide the resources we need to expand our centralized production capacity at the Seri Kembangan and Shah Alam factories to drive operational efficiency through automation.