(From left) Ocean Fresh Bhd chairman Law Chee Khong, directors Kee Wan Chum and Teo Chee Han, substantial shareholder Darmanto, directors Datuk Seri Chia Hooi Huak and Siang Hai Yong, substantial shareholder Tan Eng Aun, and KAF Investment Bank chief executive officer Rohaizad Ismail and director of corporate finance Yap Chin Fatt at the listing ceremony on Thursday. (Photo by Zahid Izzani/The Edge)

KUALA LUMPUR (July 4): Bursa Malaysia saw another impressive debut on Thursday — the third in as many days — with frozen seafood company Ocean Fresh Bhd (KL:OFB) opening at more than double its initial public offering (IPO) price.

Ocean Fresh opened at 85 sen versus its IPO price of 28 sen, and climbed to as high as 93 sen. The counter pared some of its gains to close at 77 sen, still up 175% or 49 sen, with 135.08 million shares changing hands. It was the day's most active stock and biggest gainer on Bursa.

At the closing price of 77 sen, the company is valued at RM161.81 million, or over 20 times its 2023 earnings of RM6.95 million.

Ocean Fresh is the second best performing IPO so far this year after underground utility engineering solutions provider UUE Holdings Bhd (KL:UUE), which closed its first day of trading on Tuesday 189.58% above its IPO price.

Another sterling opening day performance was recorded by information technology services provider Go Hub Capital Bhd (KL:GOHUB), which finished 171.43% higher than its IPO price on Wednesday.

Ocean Fresh is the second frozen seafood company to be listed this year after SBH Marine Holdings Bhd (KL:SBH). In comparison, SBH Marine rose 16% during its ACE Market debut on April 8 after raising RM50.6 million.

Ocean Fresh, which raised RM14.01 million on the ACE Market, saw its IPO’s public tranche oversubscribed by 76.22 times. The Bumiputera portion was oversubscribed by 65.68 times, while the remaining public portion was oversubscribed by 86.75 times.

Shares set aside for eligible persons and select investors offered through private placement were fully taken up.

Ocean Fresh is principally involved in the processing and trading of frozen seafood products, as well as the provision of frozen seafood processing services to its customers in Malaysia, Türkiye, China, Thailand, Vietnam and Japan.

The company said it will utilise more than half of the proceeds, or RM8 million, for its new cold storage facility in Kuantan, Pahang. The company has also budgeted RM2.51 million for working capital requirements, and will spend RM3.5 million on estimated listing expenses.

KAF Investment Bank is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.