Butterfield FB Bhd (BFB) aims to raise RM72 million (US$17.6 million) from its latest IPO listing on the ACE Market, as it plans to use more than 20% of the proceeds to finance the expansion of its HQ building at Bukit Minyak in Penang.
Butterfield, the manufacturer of coffee and tea extract powder blends, declared that the expansion will add approximately 29,170 sq.feet of production space and 9,954 sq.ft of storage space. It will support the installation of a 4th manufacturing line with 4,095 tonnes capacity along with new machinery and equipment.
Meanwhile, another 53% of the proceeds will go to working capital, while 18% will be used for strategic investments, mergers and/or acquisition opportunities in companies and/or manufacturers which are brand owners of instant coffee and tea premix brands.
The remaining RM6 million will be used to defray estimated listing expenses, it said.
