Introduction
Guan Huat Seng Holdings Berhad (GHS) is a Malaysia-based investment holding company primarily engaged in the distributive trade of food and beverage (F&B) products. Through its subsidiaries, GHS Food Industries and GHS Heng Kee, the Group distributes, retails, and manufactures a wide variety of food items.
Core Business Activities
The Group’s operations are divided into three main areas:
- Distribution: This is the primary revenue contributor, involving the distribution of shelf-stable and frozen seafood, flavouring products (such as condiments and sauces), dried food, snacks, and general grocery products.
- Retail: GHS Group operates retail outlets to sell these F&B products directly to consumers and food service operators.
- Manufacturing: To support its distribution and retail operations, the Group manufactures its own flavouring products, including sauces, pastes, herbs, spices, and seasonings.
Click here for more Guan Huat Seng Holding Berhad IPO information!
Guan Huat Seng Holdings Berhad is scheduled to be listed on the ACE Market of Bursa Malaysia under the Consumer Products & Services sector (specifically distributive trade of F&B), with an IPO price of RM0.25 per share.
The Group will have an enlarged issued share capital of 473,500,100 shares, translating into an estimated market capitalisation of RM118.38 million upon listing. Based on its financial year ended 2025 profit after tax of approximately RM7.23 million, the IPO is valued at a price-earnings (PE) ratio of 16.37 times.
The offering includes an allocation to the Malaysian public and eligible Bumiputera investors approved by MITI
Click here for Guan Huat Seng Holdings Berhad’s IPO Prospectus
Use of IPO Proceeds
- New Integrated Complex (RM12.00 million / 40.00%)
- Constructing a 100,000 sq. ft. facility in Batu Berendam, Melaka, which will consist of Block A for storage and a showroom, and Block B for food processing and R&D activities
- New Krubong Facility (RM9.00 million / 30.00%)
- Relocate its manufacturing operations to a new three-storey building, which will effectively increase the production area from approximately 18,000 sq. ft. to 40,000 sq. ft..
- Working Capital (RM3.00 million / 10.00%)
- Specifically to fund raw material inventories and to expand the transportation fleet with three new trucks
- Marketing Expenses (RM1.50 million / 5.00%)
- Digital and offline branding initiatives to strengthen the “GHS” and “Heng’s” brands in Malaysia, Singapore, Hong Kong, and the United Kingdom.
- Marketing & Branding (2.4% | RM0.74m)
- Targeted social media advertising and billboard campaigns for new brands.
- Estimated Listing Expenses (RM4.50 million / 15.00%)
- Professional fees and costs related to the IPO listing.
Guan Huat Seng Holdings Berhad recorded RM93.11 million in revenue, growing 9.77% year-on-year. Net profit reached RM7.2 million, with a profit margin of 7.76%. At the IPO price, the company is valued at a PE ratio of 16.34x and delivered a ROE of 16.97%%.
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Post-IPO Shareholding Structure
The remaining 29.77% of the share capital is allocated to the Malaysian public, eligible directors and employees, and private placements to selected and Bumiputera investors approved by MITI, providing the necessary market liquidity after listing . Overall, the shareholder structure reflects a clear balance between maintaining strong founder control and fulfilling the public float requirements for its listing on the ACE Market of Bursa Securities, supporting strategic consistency while allowing for broader investor participation.
Disclaimer: The information provided is for educational purposes only and does not constitute financial advice. Investment in securities involves risks, and investors are encouraged to do their own research or consult with a financial advisor before making any investment decisions.
Screenshot from ShareInvestor Pro (Date: 13/1/2025)