Newly listed MyAxis eyes capacity growth

New Straits Times

10 hours ago

KUALA LUMPUR: Meat processor and distributor MyAxis Group Bhd made its debut on the LEAP Market of Bursa Malaysia today at 18 sen, a six-sen premium over its initial public offering (IPO) price of 12 sen.
In a statement, MyAxis said the company has set its sights on increasing its meat processing capacity to drive growth after its listing, having raised RM5.3 million from the IPO.
Through its wholly owned subsidiary, KK Fresh Frozen Sdn Bhd (KK Fresh), MyAxis has been in the frozen meat distribution business since 2015.
"The listing exercise marks a pivotal moment for MyAxis as we look to strengthen the KK Fresh brand. We are excited about our new meat processing facility that will take our business to the next level.
"The upstream shift complements our existing distribution business, enabling us to expand the range of products that we will be able to offer to our customers," said MyAxis executive chairman Datuk Tan Hwa Sing.
With the enlarged processing facility, Tan said the company will be able to offer value-added services to its existing customers and to open up new markets.
Meanwhile, he said MyAxis intends to establish its own Halal brand of processed meat products to further expand market reach and, most importantly, contribute to strengthening Malaysia's food security.
"The IPO not only helps in raising our corporate profile but also accelerates our growth trajectory as we tap into the capital market," he said.
With the expanded processing and storage capacities, Tan said the company also targets significantly growing its customer base, particularly among food and beverages (F&B) providers, hotel chains and processed food manufacturers.
With a built-up area of 17,567.7 square feet, he said the new processing facility, located strategically near the Malaysia-Thailand border at Bukit Kayu Hitam, is expected to be operational by 2026.
"The strategic location helps in enhancing container security and ensuring product quality for frozen meats imported from Thailand.
"In addition, the new plant is designed to comply with key food safety and quality standards, including Halal, MESTI, GMP, HACCP, and VHM, ensuring full compliance with regulatory and industry best practices," he added.
Following the company's listing on the LEAP Market today, MyAxis has outlined a plan to transfer to the ACE Market within two years.
MyAxis aims to raise RM5.29 million through a private placement of 44.1 million new shares at 12 sen apiece, implying a market capitalisation of RM40.9 million upon listing.
The proceeds will be used to repay bank borrowings (RM3 million), purchase new machinery, support working capital, enhance branding and marketing, and defray listing expenses.