Sik Cheong Berhad ("熾昌有限公司"), a company specializing in the repackaging, marketing, and distribution of RBD palm olein oil, has made a strong debut on the ACE Market of Bursa Malaysia Securities Berhad ("Bursa Securities"). The company, listed under the consumer products and services sector, trades under the stock name SCB with the stock code 0316.

At the opening bell, Sik Cheong's share price opened at 50 sen, marking an impressive 85.2% premium over its issue price of 27 sen.

"We are truly grateful for the market's confidence as Sik Cheong embarks on this new journey as a publicly listed company," said Sik Cheong's Managing Director, Mr. Wong Hing Ngiap (黄興業). "This milestone reflects over three decades of our expertise in the RBD palm olein oil repackaging industry. With the capital raised, we are well-positioned to enter our next phase of expansion."

The Malaysian RBD palm olein repackaging industry is expected to grow significantly, with a projected compound annual growth rate (CAGR) of 20.9%, reaching RM12.8 billion by 2026. This growth is driven by consistent consumer demand and an increase in demand from hotel, restaurant, and catering operators.

Recognizing the market potential, Sik Cheong plans to expand its product range to include high oleic soybean oil, offering a cost-effective option suitable for various cooking methods. This strategic expansion will be supported by the construction of a new packaging facility by rebuilding Factory No. 9, situated next to the existing Factory No. 11. The expansion will increase Sik Cheong's operational space by 88.1%, addressing the space limitations at Factory No. 11 and enabling the repackaging of both high oleic soybean oil and RBD palm olein oil products.

Additionally, Sik Cheong aims to expand its geographical reach to states such as Perak, Negeri Sembilan, Melaka, and Pahang, leveraging their proximity to Kuala Lumpur and Selangor, where Factory No. 11 is located. To ensure timely and reliable deliveries, the company will also increase its fleet of delivery trucks.

From its IPO, Sik Cheong raised RM17.8 million, allocating RM7.2 million (40.3%) for the expansion of its packaging facility, RM0.9 million (5.0%) for new delivery trucks, RM6.0 million (33.4%) for working capital, and RM3.8 million (21.3%) to cover listing expenses.

TA Securities Holdings Berhad served as the Principal Adviser, Sponsor, sole Underwriter, and Placement Agent for the IPO exercise.