Background

Based in Sarawak, Supreme Consolidated Resources Berhad (Supreme) specialises in distributing ambient food and beverage (F&B) products, frozen and chilled food products, and non-F&B products for third-party brands. The company manages both third-party brands and its own 'Supreme' brand across Sarawak and Sabah.

IPO Statistic

Listed on the LEAP Market in 2019, the group is now aiming to transfer its listing status to the ACE Market. The IPO involves a public issue of 70.0mn new shares, with no shares offered for sale. This public issue comprises 8.6mn new shares allocated to the public, 7.65mn shares for eligible persons, and 53.75mn shares for Miti-approved Bumiputera investors. Collectively, these share offers represent 16.3% of the group’s enlarged issued share capital.

Competitive Advantages

1. Wide-ranging Product Portfolio & Established Relationships with Suppliers
2. Wide Distribution Network
3. Experienced Management Team

Valuation

At an IPO price of RM0.25/share, Supreme is valued at a PER of 11.7x based on its FY23 EPS. We arrive at a fair value of RM0.30/share for Supreme, using a PER of 11.4x based on its CY25 EPS, which is in line with the simple average PER of comparable companies in the F&B and discretionary products distribution services industry. Not Rated.

Source: TA Research - 13 Nov 2024