Company: Guan Huat Seng Holdings Berhad

Date of Prospectus: 5 January 2026

Guan Huat Seng Holdings Berhad IPO: A Deep Dive into Malaysia’s Next ACE Market Entrant

Guan Huat Seng Holdings Berhad (“GHS Holdings”) is poised to make its debut on the ACE Market of Bursa Malaysia Securities Berhad, offering investors exposure to a dynamic player in the food distribution and retail sector. This analysis covers all critical aspects: IPO snapshot, financial health, management strength, industry trends, risks, growth plans, dividend policy, valuation, and listing outlook.

IPO Snapshot: Key Details and Offer Structure

IPO Symbol: Not explicitly disclosed.
Offer Price: RM0.25 per share.
Total Offer Size: 141,000,000 shares (120,000,000 new shares via Public Issue, 21,000,000 existing shares via Offer for Sale).
Post-IPO Outstanding Shares: 473,500,100 shares.
Expected Market Capitalisation on Listing: RM118,375,025.
Application Window: Opens 10:00 a.m., 5 January 2026; closes 5:00 p.m., 9 January 2026.
Balloting Date: 13 January 2026.
Allotment/Transfer Date: 20 January 2026.
Listing Date: 22 January 2026.

Use of Proceeds:

• New Integrated Complex (Batu Berendam, Melaka): RM12 million (40%)
• New Krubong Facility: RM9 million (30%)
• Working Capital: RM3 million (10%)
• Marketing Expenses: RM1.5 million (5%)
• Estimated Listing Expenses: RM4.5 million (15%)

This allocation signals a strong growth-driven story focused on expansion, product development, and market presence, rather than deleveraging.

Dividend Policy and Shareholder Returns

Dividend Commitment: The Board intends to recommend and distribute up to 30% of annual audited profit after tax attributable to shareholders. However, this is not a legally binding obligation and depends on subsidiary profits, performance, and operational needs. No specific timetable is committed.
During FYE 2024, a total dividend of RM800,000 was paid to promoters/substantial shareholders. No dividends were declared for FYE 2025/2026 as of the prospectus date.

Investor Participation and Book Quality

Allocation Breakdown:

• Public Balloting: 23,800,000 shares (50% for Bumiputera public investors)
• Eligible Parties: 14,000,000 shares (Directors, employees, contributors)
• Private Placement: 82,200,000 shares (59,200,000 to Bumiputera investors approved by MITI; 23,000,000 to selected investors)
• Offer for Sale: 21,000,000 shares (selected investors)

No anchor/institutional investor names disclosed. Placement shares are supported by irrevocable undertakings from selected investors, indicating confidence in the offering’s book quality. All public shares are fully underwritten. No oversubscription figures provided.

Deal Parties and Offer Structure

Principal Adviser, Sponsor, Underwriter, Placement Agent: TA Securities Holdings Berhad.
No other investment banks or global coordinators listed.
Underwriting: All balloted public shares are fully underwritten. Underwriting commission is 2.5% of underwritten shares.
Placement Fee: Up to 2.5% for private placement shares; 1% brokerage for selected investors.
Stabilization/Greenshoe: No greenshoe or price stabilization mechanism employed.
Based on these roles, the listing appears well-supported for orderly trading and liquidity, with all major categories covered.

Company Overview: Business Model, Revenue Streams, and Brands

Business Model: GHS Holdings is a distributor and retailer of food products, specializing in shelf-stable and frozen seafood, flavorings, and sauces. Operations span import, distribution, retail, and in-house manufacturing.
Key Revenue Streams: Distribution and retail of third-party and own-branded products, food processing, bulk sales via showrooms, and exports to Singapore, Hong Kong, and UK.
Customer Segments: Resellers (wholesalers, supermarkets, hypermarkets, minimarkets), food service outlets, and end consumers.
Geographies: Primarily Malaysia, with export initiatives to Singapore, Hong Kong, and UK.
Brands: “Makbest”, “Sky Chef”, “Cai Yan”, and “McCann” (pending trademark registration).

Industry Overview and Sector Dynamics

Sector: Food distribution and retail (shelf-stable and frozen seafood, sauces, flavorings).
Industry Size: Not quantified in the prospectus.
Demand Drivers: School holidays and festive periods (notably Chinese New Year) boost sales, with higher revenue typically in the first half of the year.
Market Position: No explicit market share figures, but the company emphasizes competitive strengths in brand portfolio, product quality, and supply chain management.

Financial Health: Multi-Period Performance

Summary Table: Key Financials

Trend: GHS Holdings demonstrates a consistent upward trajectory in revenue and profitability, with rising gross and net margins. Borrowings increased in FYE 2024 but declined in FYE 2025, while the current ratio and gearing remain healthy.

Competitive Advantages and Management

Competitive Advantages:

• Diversified product portfolio across shelf-stable and frozen food
• Robust supply chain and distribution network
• Brand strength in Malaysia and growing export markets
• Strong customer relationships across retail and food service sectors

Management Team:

• Yeo Tien Ee – Managing Director
• Yeo Tian Seng – Executive Director
• Lee Chee Kian – Executive Director
• Yau Xiang Ying – Head of Finance
• Kuan Lee Sia – Head of Procurement
• Cheong Poh Peng – Head of Human Resources

Board includes independent non-executive directors, adding governance depth.

Trends, Timing, and Market Environment

Seasonality: Higher sales during school holidays and festive periods, especially Chinese New Year.
IPO Timing: Application period 5–9 January 2026, listing on 22 January 2026.
Macro Environment: No adverse material events reported in the 12 months prior; inflationary pressures noted as a risk to costs and margins.
Recent Developments: No material interruptions; new facility and capacity expansion planned.

Prospectus Deep Dive: Risk Factors

Key Risk Exposures:

• Supply Chain Disruption: Reliance on external suppliers for imported products; potential quality and food safety risks.
• Price Fluctuations: Market-driven volatility in seafood and product input prices.
• Licensing/Compliance Risk: Suspension/revocation of material licenses could impact operations.
• Key Person Risk: Dependence on directors and senior management.
• Inflationary Pressure: Rising costs for products, logistics, labor, and utilities.

Exposure is not quantified, but risk factors are clearly acknowledged.

Growth Strategy and Expansion Plans

Expansion Pipeline:

• New Integrated Complex: RM12 million allocated; construction in Batu Berendam, Melaka, with additional storage, processing, development, showroom, and admin office. Target completion within 36 months.
• New Krubong Facility: RM9 million allocated; construction to commence Q2 2027, completion Q4 2028 (18 months build time), including relevant licensing.
• Working Capital: RM3 million for new hires, inventory, and logistics fleet expansion (trucks).
• Marketing: RM1.5 million for trade fairs, exhibitions, advertising, and promotional campaigns, including international reach.

Ownership Structure and Lock-Ups

Pre-IPO Shareholders:

• Chan Kim Yeo: 46.42% (before IPO); 33.18% (after IPO)
• Yeo Tien Ee: 30.72% (before IPO); 21.46% (after IPO)
• Yeo Tian Seng: 22.86% (before IPO); 15.59% (after IPO)

Lock-Up Periods:

• Specified shareholders’ entire holdings locked for 6 months post-listing
• Subsequent 6 months: 45% of holdings remain under moratorium
• After 12 months: Up to one-third of locked shares may be sold per annum on a straight-line basis

No ESOPs disclosed.

Valuation and Peer Comparison

IPO Valuation:

• IPO Price to Book (P/B): 1.67x (RM0.25 offer price vs. RM0.15 pro forma NA/share)
• P/E Multiple: 16.34x (FYE 2025 EPS of 1.53 sen), or 13.02x after adjusting for non-recurring listing expenses

No peer company data or sector multiples disclosed in the prospectus.

Research Coverage and Opinions

No analyst reports, opinions, or price targets disclosed in the document.

IPO Allotment Result and Subscription Levels

Final subscription outcomes by tranche are not disclosed in the prospectus.

Listing Outlook: Inferred Prospects

Based on the following facts:

• Fully underwritten public offer and irrevocable undertakings for private placement shares
• Strong multi-year growth in revenue and profitability
• Healthy balance sheet and low gearing
• Clear growth strategy with expansion capex
• Dividend policy targeting up to 30% payout
• No greenshoe or stabilization mechanism, but deal structure supports orderly trading
• Seasonality and festive demand likely to support volume post-listing

The IPO appears attractive for investors seeking growth, exposure to food distribution, and dividend potential. First-day trading is likely to be robust, with share price expected to trade at or above the offer price of RM0.25, barring adverse market developments.

Prospectus Access and How to Apply

Website to Obtain Prospectus: www.bursamalaysia.com
Application Channels: Banks, brokers, issuing house, and via Bursa Malaysia e-IPO platforms. Application forms are not available in electronic format.
Eligibility: Malaysian citizens, companies, co-operatives, societies, institutions incorporated or organized under Malaysian law.
Application Window: Opens 10:00 a.m., 5 January 2026; closes 5:00 p.m., 9 January 2026.