Company Background

The Company was incorporated in Malaysia under the Act on 18 October 2021 as a private limited company under the name of Fantastic Holdings Sdn Bhd. On 17 August 2022, the Company was converted into a public limited company and assumed the name of Fantastic Holdings Berhad. Subsequently, on 8 March 2023, the Company’s name was changed to its present name.

The corporate structure as at the LPD is as follows:-

The company is principally a frozen seafood processing group with involvements in various stages of the value chain, from aquaculture shrimp farming to the processing and sale of frozen seafood products to both local as well as overseas customers, merchant trading of frozen processed seafood products, and distribution and trading of aquaculture related products (such as shrimp feed, post larvae, probiotics and test kits).

Use of proceeds

1. Development of Selinsing Farm - 40.40% (within 36 months)
2. Construction of a new seafood processing plant - 16.42% (within 24 months)
3. Purchase of machineries/equipment and motor vehicles - 15.40% (within 24 months)
4. Working capital requirements - 17.68% (within 12 months)
5. Estimated listing expenses - 10.10% (Immediate)

Development of Selinsing Farm - 40.40% (within 36 months)

Since the addition of Selinsing Farm to the JV Agreement, the company has rehabilitated and put into operation 30 shrimp ponds at the Selinsing Farm as at the LPD. The annual shrimp carrying capacity from the 30 shrimp ponds in the Selinsing Farm for FYE 2023 is estimated to be 260 tonnes. For FYE 2023, the production yield from Selinsing Farm was approximately 74.6% (based on the actual production of 194 tonnes of shrimp). The company intends to rehabilitate and develop another 79 shrimp ponds and complete the infrastructure development for the Selinsing Farm in phases as follows:-

The details of the total estimated total cost which mainly comprises infrastructure work and pond preparation costs as well as farm equipment are as follows:-

Construction of a new seafood processing plant - 16.42% (within 24 months)

The total estimated cost of construction of the new seafood processing plant is approximately RM6.50 million which is intended to be fully funded from the gross proceeds of the Public Issue. The estimated breakdown of the cost of construction for the new seafood processing plant is as follows:-

The construction of the new seafood processing plant is expected to commence in the third quarter of 2024 upon obtaining all required building approvals and be completed within 12 months. The indicative timeline of construction and commissioning for the new seafood processing plant is as follows:-

Purchase of machineries/equipment and motor vehicles - 15.40% (within 24 months)

The Group intends to utilise RM6.10 million from the Public Issue to purchase additional machineries/equipment and motor vehicles for both seafood processing operations and aquaculture shrimp farming activities.

In conjunction with the plans to develop more shrimp ponds at the Selinsing Farm and construct a new seafood processing plant, the company would require additional machineries/equipment and motor vehicles to support the business operations. The details of the machineries/equipment and motor vehicles that they intend to purchase are as follows:-

Working capital requirements - 17.68% (within 12 months)

The requirement for working capital is expected to increase in line with the expected expansion and business growth of the Group. Therefore, the Group proposes to allocate RM7.0 million of the gross proceeds for the following:-

Business model

The current business model is summarised as follows:-

As part of future business plans and strategies, the company intends to operate shrimp hatchery and nursery facilities to supply shrimp post larvae to aquaculture shrimp farms for cultivation. The Hatchery Centre is expected to be operational by the fourth quarter of 2024 after obtaining all requisite regulatory approvals.

Business Segments

Currently, the Group is involved in the following business activities:-

1. Processing and sale of frozen seafood products;
2. Merchant trading of frozen processed seafood products;
3. Aquaculture shrimp farming; and
4. Distribution and trading of aquaculture-related products such as shrimp feed, post larvae, probiotics and test kits

Click here to continue the IPO - SBH Marine Holdings Berhad (Part 2)

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