KUALA LUMPUR: Manufacturer of coffee and tea extract powder blends Butterfield FB Bhd (BFB)inked an underwriting agreement with M&A Securities Sdn Bhd for its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia.
Butterfield FB executive director and CEO Lee Mong Khai said the signing of the underwriting agreement with M&A Securities brings the group one step closer to its upcoming IPO on the ACE Market of Bursa Malaysia.
“This milestone marks the beginning of a new chapter, focusing on driving growth and strengthening our market presence.
“We believe the group is well-positioned to benefit from growing demand for convenient beverage solutions. As F&B manufacturers introduce new beverage formats such as instant beverage premixes and ready-to-drink products, demand for customised coffee and tea extract powder blends is expected to grow, supporting our expansion plans and long-term prospects,” he said.
Lee said the funds raised through the IPO will be mainly allocated to expand production and storage capacity at its Bukit Minyak premises, including the installation of a new manufacturing line.
These investments, he said, will enable BFB to meet growing demand, improve operational efficiency, and further enhance the group’s ability to serve both domestic and international customers.
Butterfield FB manufactures coffee extract powder blends and tea extract powder blends, providing customers with end-to-end solutions from formulation and manufacturing to distribution.
The group also sells and trades food ingredients and instant beverage premixes.
Its customers comprise business end-users including instant beverage premix manufacturers, ready-to-drink beverage producers, functional F&B manufacturers, and confectionery manufacturers.
Malaysia and Thailand are the group’s largest revenue contributors.
Supported by a wide and extensive network of global suppliers and a diverse customer base, the group is able to provide customised formulations that meet customers’ specific requirements across taste profiles and target markets.
Butterfield FB’s IPO exercise comprises a public issuance of 150 million shares, representing 18.8% of its enlarged share capital, as well as an offer for sale of 72 million shares, or 9% of its enlarged share capital, via private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti) and selected investors.
Out of the 150 million new shares, 40 million shares will be made available to the Malaysian Public via balloting, 16 million shares to its eligible directors, employees and persons who have contributed to the success of the group, while the remaining 94 million shares will go towards private placements to Bumiputera investors approved by Miti.
M&A Securities will underwrite 56 million new shares.
Butterfield FB is scheduled to be listed on the ACE Market by September 2026, with M&A Securities as the principal adviser, sponsor, sole underwriter and placement agent for the IPO exercise.