Sik Cheong Berhad, a leading player in the repackaging, marketing, and distribution of RBD palm olein oil, has seen unprecedented interest in its initial public offering (IPO). The company's IPO, set to list on the ACE Market of Bursa Malaysia Securities Berhad, was oversubscribed by a staggering 213.53 times, marking the highest oversubscription rate for an IPO in the past ten years.

The Group, known for its RBD palm olein oil products including cooking oil under the "Sawit Emas" and "Vitamas" brands, as well as lamp oil sold under the "Pingat Emas" label, has attracted 26,395 applicants vying for 2,853,204,800 shares valued at approximately RM770.37 million. The public issuance includes 66,000,000 new ordinary shares, representing 24.8% of the enlarged share capital, and an offer for sale of 20,000,000 existing shares, or 7.5% of the enlarged share capital, through private placement.

The oversubscription was significant across all categories: the Bumiputera portion was oversubscribed 195.40 times, while the public portion saw an oversubscription rate of 231.65 times. Additionally, the 4,000,000 shares available to eligible Directors, employees, and contributors have been fully subscribed, as has the private placement of 48,700,000 shares and the 20,000,000 offer shares.

Notices of allotment will be sent to successful applicants on 9 August 2024. Sik Cheong's Managing Director, Mr. Wong Hing Ngiap, expressed gratitude for the strong response, highlighting it as a testament to the company's strategic direction and commitment to growth. "This reinforces our dedication to creating value for our shareholders as we explore new growth opportunities in essential food distribution," Wong stated.

Looking ahead, Sik Cheong plans to expand its product range to include high oleic soybean oil, responding to interest from food manufacturers and hotel operators. This new addition is expected to complement their existing RBD palm olein oil products and cater to a wider market, including households, hotels, restaurants, and food manufacturers.

Sik Cheong also aims to broaden its reach beyond Kuala Lumpur and Selangor, with plans to penetrate neighbouring states such as Perak, Negeri Sembilan, Melaka, and Pahang.

The company is scheduled to list on the ACE Market of Bursa Securities on 13 August 2024. At an IPO price of 27 sen per share and an enlarged issued share capital of 266 million shares, Sik Cheong's market capitalisation is projected to be approximately RM71.8 million. TA Securities Holdings Berhad serves as the Principal Adviser, Sponsor, sole Underwriter, and Placement Agent for the IPO.