KUALA LUMPUR, 7 October 2019 – SDS Group Berhad (“SDS Group” or the “Company”) a home grown bakery products manufacturer and distributor will expand its local branch to the central and northern region of Peninsular Malaysia after listing.
Eight (8) new food and beverages (F&B) outlets are predicted to open under its retail business in established residential areas within the Klang Valley over two years.
“We expect to open three (3) F&B outlets by October 2020 while the remainig five (5) outlets by October 2021. Currently, SDS Group has 33 F&B outlets in Johor. For expansion plan into Penang and Kedah, SDS Group will set up two (2) new depots in Bukit Mertajam, Penang and Sungai Petani, Kedah and purchase 18 new delivery vehicles. We need to widen our distribution network and increase our logistics coverage in order to grow our wholesale business to extend the reach of our bakery products,” said, Mr Tan Kim Seng, Managing Director of SDS Group.
SDS Group has 19 depots across Peninsular Malaysia and 250 one-tonne delivery vehicles, distributing its products to some 10,000 customers which include convenience stores and supermarkets. The Listing Ceremony was officiated by Mr Tan and Mr Tan Kim Chai, the Executive Director of SDS Group hitting the gong together with the Company’s Board of Directors.
SDS Group has raised RM23.99 million under the listing exercise from its Public Issue of 104.29 million new shares at RM0.23 per share of which 20.29 million new shares were made available to the Malaysian public via balloting: 23.13 million new shares for its eligible Directors, employees and business associates/persons who have contributed to the success of SDS Group while the remaining 60.87 million new shares are earmarked for private placement to selected investors.
RM6,00 million (25.0%) of the total IPO proceeds, will be used to expand its business presence for both the wholesale and retail channels within the northern and central regions of Peninsular Malaysia respectively with the additional capacity from its new manufacturing plant in Seremban.
It will further utilize RM7.79 million (32.5%) for general working capital requirements; RM7.00 million (29.2%) to repay bank borrowings while the remianing RM3.20 million (13.3%) to be used to defray listing expenses for the IPO. Based on enlarged share capital of RM405.82 million shares, SDS Group is expected to have a market capitalization of RM93.34 million.