Hock Soon Capital signs underwriting deal ahead of Main Market listing

KUALA LUMPUR (Jan 7): Hock Soon Capital Bhd (Hock Soon) has signed an underwriting agreement with M&A Securities Sdn Bhd in preparation for its listing on the Main Market of Bursa Malaysia.

Hock Soon is in the poultry farming business, specialising in the rearing of layer chickens for the production and sale of table eggs to food manufacturers, as well as to wholesale and retail markets.

The company sells ordinary eggs either unbranded, under its house-brand Qplus or
under customers’ brands, while premium eggs are marketed under the Qplus house-
brand. It also provides private-label packing and labelling services for customers.

Its initial public offering (IPO) comprises a public issue of 100 million new shares and an offer for sale of 50 million existing shares, representing 20 and 10 per cent of the enlarged share capital, respectively.

Under the underwriting agreement, M&A Securities will underwrite 37.5 million issue shares allocated to the Malaysian public via balloting, as well as to eligible directors, employees of Hock Soon and its subsidiaries, and persons who have contributed to the group under the Pink Form allocations.

The remaining 62.5 million issue shares will be placed with Bumiputera investors approved by the Ministry of Investment, Trade and Industry.

All 50 million offer shares are reserved for private placement to selected investors.

Hock Soon is tentatively scheduled to be listed on the Main Market in February 2026.

Executive director Alex Ong Keat Hoe said the IPO will enable Hock Soon to raise funds to establish a new poultry farm in Teluk Intan, Perak, in line with its expansion plans.

“We plan to progressively construct 25 chicken coops at the new farm, allowing disciplined expansion in line with market conditions and customer growth. Once operational, the farm is expected to increase our egg production capacity, supporting both business and financial growth,” he said in a statement on Wednesday.

As at Feb 28, 2025, Hock Soon operates a poultry farm in Bidor, Perak, comprising 26 closed-house coops for mature hens and seven for pullets, with capacities of 1.74 million mature hens and 486,912 pullets. The farm has an estimated egg production capacity of about 1.48 million eggs per day.

From financial year 2022 to 2024, the group recorded strong financial growth, driven mainly by higher table egg sales.

Its net profit rose 181 per cent to RM40.7 million in FY2024 from RM14.5 million in FY2022, translating into a two-year compounded annual growth rate of about 67.5 per cent.

Over the same period, revenue increased 12.8 per cent to RM151.4 million from RM134.2 million. The group posted a three-year average net margin of 20.4% and a gross profit margin of 28.1 per cent, reflecting sustained profitability and cost efficiency.

M&A Securities is the adviser, underwriter and placement agent for the IPO.