Kuala lumpur: Butterfield FB Bhd's (BFB) initial public offering (IPO) has been oversubscribed by 18.67 times by the Malaysian public, ahead of its listing on the ACE Market of Bursa Malaysia on September 15, 2026.
According to BERNAMA News Agency, BFB's IPO exercise comprises a public issuance of 150.0 million new ordinary shares at an issue price of RM0.48 per share. This represents 18.8 percent of its enlarged share capital, with an expected total of RM72 million to be raised from the public issue.
In a filing with Bursa Malaysia today, the coffee and tea extract powder blends manufacturer stated it received a total of 12,670 applications for 786.67 million new shares, valued at RM377.60 million, for the 40 million new shares allocated to the Malaysian public. For the Bumiputera portion, a total of 7,773 applications for 439,612,700 new shares were received, resulting in an oversubscription rate of 20.98 times. For the public portion, 4,897 applications for 347.06 million new shares were received, representing an oversubscription rate of 16.35 times.
BFB further mentioned that the 16 million new shares available for application by eligible persons have been fully subscribed. Additionally, the 100 million shares, comprising 94 million issue shares and six million offer shares made available by private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI), have been fully placed out. The 66 million new shares made available by private placement to selected investors have also been fully placed out.
BFB announced previously that RM15.2 million from the proceeds will be used to expand the group's headquarters in Bukit Minyak, Penang. It stated that RM37.8 million will be allocated for working capital, RM13 million will be used to pursue strategic investments, mergers, and/or acquisition opportunities in companies and/or manufacturers which are brand owners of instant coffee and tea premix brands, while RM6 million will be used to defray estimated listing expenses.
MandA Securities Sdn Bhd is the adviser, sponsor, underwriter, and placement agent for the IPO exercise.