06/01/2026

BIZ & FINANCE TUESDAY | JAN 6, 2026

14

Guan Huat Seng set to raise RM30m from IPO

KUALA LUMPU R : Glomac Bhd is disposing of two vacant leasehold land parcels in Puchong to Sunway Kiara Sdn Bhd for RM97.3 million. In a filing with Bursa Malaysia yesterday, Glomac said its subsidiary, Glomac AI Batha Sdn Bhd, has entered into two separate sale and purchase agreements (SPA) with Sunway Kiara for the disposal of the vacant lands known as Plot 3 and Plot 4. Sunway Kiara is a wholly owned subsidiary of Sunway City Sdn Bhd, which is a part of Sunway Group. Glomac said the dis posal consideration was determined on a willing buyer, willing seller basis and repre sents a pre mium of RM19.12 mil lion over the properties’ com bined net book value of RM78.18 million as at April 30, 2025. “The disposal consideration, while below the market valuation, is considered reasonable in view of the purchaser’s financial credibility and the strategic benefits to the company and its subsidiaries, including the repayment of borrowings and interest cost savings,” it said. Glomac said the proposed disposals present an opportunity for the group to unlock the value of its properties while enabling the company to utilise the proceeds to repay existing borrowing and reduce ongoing interest expenses. “Barring any unforeseen circum stances and subject to the com pletion of the SPAs, the board expects the proposed disposals to be completed by the third quarter of 2026 for Plot 3 and the third quarter of 2027 for Plot 4,” it said. Glomac said that of the RM97.3 million in total proceeds, RM62.21 million will be used to repay existing loans, and the remaining RM35.09 million for working capital. The group added that the proposed disposals will not affect the company’s share capital or the substantial shareholders’ share holdings, as no new ordinary shares will be issued. – Bernama Glomac to sell two land parcels in Puchong to Sunway Kiara turnaround activities as a major cluster of global facilities undergo maintenance phases,” it said. Kenanga IB maintained a ‘neutral’ stance on the sector, with its Brent crude target unchanged while remaining above consensus at US$67 (RM272.85) per barrel. “This reflects our view that the oversupply risk in financial year 2026 may be overstated, as Opec+ has signalled a pause in production hikes in the first quarter of calendar year 2026, and demand weakness appears largely priced in by the market,” it added. – Bernama

strate the company’s capabilities to existing and potential customers. The Krubong facility will mainly focus on the manufacturing of flavouring products and will be supported by a warehouse facility for the storage of goods. Each of these two facilities will include a dedicated space for the storage of goods and materials to support the distribution and retail segments. “The launch of our prospectus represents a significant milestone in our transformation from a traditional food retailer into a diversified distributor and retailer of food products, with in-house manu facturing capabilities. The IPO will enable us to accelerate our ex pansion plans, increase production and storage capacity through our new facilities in Malacca, and strengthen our presence in both distribution and retail segments,” Yeo said. En route to listing on the ACE Market of Bursa Malaysia, GHS Holdings is undertaking a public issue of 120 million new shares, alongside an offer-for-sale of 21 million existing shares, at an IPO price of 25 sen per share.

Upon its listing, scheduled for Jan 22, GHS Holdings will have a market capitalisation of about RM118.38 million. TA Securities Holdings Bhd is the principal adviser, sponsor, under writer and placement agent for the IPO. Since commencing operations in 1979, GHS Holdings has built an established track record of about 46 years, and has grown into a distributor and retailer of food products, supported by in-house manufacturing of flavouring pro ducts, offering a diverse range of products sold under its own brands such as Heng’s, Makbest, SunCity and OceanStars and third-party brands, as well as unbranded products. The group has established a broad customer base comprising wholesalers, retailers, food service operators, consumers, and food manufacturers. Leveraging its track record and established customer base, the group is well-positioned to scale operations, expand its product offerings enter untapped domestic and international markets, and potentially diversify into comple mentary product areas.

o Offer shares priced at 25 sen each, part of proceeds will be used to finance construction of integrated complex and three-storey facility in Malacca

prospectus, the company aims to commence construction of the integrated complex in the fourth quarter of this year and completion is targeted by the third quarter of 2028. As for the Krubong facility, the company will commence con struction in the second quarter of 2027 and targets to complete it by the fourth quarter of 2028. The integrated complex will facilitate the distribution of food products and expand into food processing operations for seafood products. It will also house a product showroom, an administrative office and a product development facility. The product showroom is designed to facilitate bulk sales to the company’s reseller and food service operator customer base. It will also serve as a reference point to demon

Ű BY JOHN GILBERT sunbiz@thesundaily.com

KUALA LUMPUR: Food products distributor and retailer and flavouring products manufacturer Guan Huat Seng Holdings Bhd (GHS Holdings) is channelling part of proceeds from its upcoming initial public offering (IPO) towards the construction of an integrated complex in Malacca. The new complex will provide additional storage space, a food processing facility, a product development facility, product show room and administrative office. The company is also constructing a three-storey facility in Krubong in Malacca, which will expand pro duction and storage capacity. Managing director Yeo Tien Ee said these initiatives are expected to improve GHS Holdings’ operational efficiency and support future growth. “We remain focused on expan ding our product offerings, streng thening relationships with existing customers, and exploring new market opportunities within and beyond Malaysia. Our growth strategy is grounded in discipline, practicality and a clear under standing of our strengths within Malaysia’s distributive trade of food and beverage product industry,” he said during the company’s IPO prospectus launch yesterday. GHS Holdings is expected to raise RM30 million by issuing 120 million new shares at an issue price of 25 sen per share. GHS Holdings will allocate RM12 million from the proceeds to part finance the integrated complex, RM9 million to part-finance the Krubong facility, RM3 million for working capital, RM1.5 million for marketing expenses and RM4.5 million for estimated listing expenses. According to the GHS Holdings’

From left: Guan Huat Seng Holdings executive directors Lee Chee Kian and Yeo Tian Seng, Yeo Tien Ee; TA Securities Holdings executive director of operations Tah Heong Beng, head of corporate finance Ku Mun Fong and assistant vice president of corporate finance Chin Wai Kit.

Kenanga IB: Petrochemical prices could see short-term upside KUALA LUMPU R : Petrochemical prices in 2026 could enter a short term bull cycle despite a weak near term macroeconomic backdrop, according to Kenanga Investment Bank Bhd (Kenanga IB). pared with 2023–2024), as several major clusters of plants are due for major turnarounds,” it said in a note yesterday. These factors could result in short tained for years,” it said. Kenanga IB highlighted that China remains the key market to watch, as it has the largest capacity (million tonnes per annum) globally.

terrorism charges. “In terms of its impact on global oil supply, this could tighten supply in the near term, but Venezuela’s recent production of 0.8–0.9 million barrels per day, even if completely halted, which is an unlikely scenario, could be offset by Opec+ production increases, should they react,” it said. On the downstream side, Kenanga IB said product prices are expected to remain weak in the near term due to persistent global oversupply. “That said, we see potential for a short-term supply squeeze in 2026, driven by higher-than-normal plant

At the same time, it noted that the local upstream subsector also appears to have bottomed out in valuation terms, with price-to-book value at a two-year low. “However, we acknowledge that a meaningful re-rating catalyst remains distant at this juncture. In Venezuela, tensions with the United States have led to President Nicolas Maduro being seized by the US military, citing narco

term tightness in petrochemical supply in 2026, as a large wave of plants will be required to undergo scheduled major maintenance, which could only be further deferred by six to 12 months. “On the other hand, we remain cognisant that the market is struc turally oversupplied in the longer term, and any potential petrochemical price upcycle is unlikely to be sus

The investment bank said that overall, the petrochemical market remains in a structural oversupply situation that could potentially extend to 2028, but believes this has largely been priced into petrochemical prices. “Moving into 2026, we believe there is a chance of a peak year for plant capacity turnarounds (com