Malaysia's BFB raises $18M in IPO, oversubscribed 18.7 times
What's the deal? Butterfield FB Bhd (BFB)Dealroom has a profile for this one. Try Dealroom →, a Malaysian manufacturer of coffee and tea extract powder blends, saw its initial public offering oversubscribed by 18.7 times ahead of an ACE Market listing on September 15. The offering raised 72,000,000 MYR (roughly $18 million), issuing 150 million new shares at RM0.48 each — 18.8% of its enlarged share capital.
By the numbers: BFB drew 12,670 applications for 786.7 million shares worth about RM377.6 million against the 40 million shares allocated. The bumiputera public portion was oversubscribed 21 times; the general public portion, 16.4 times.
What's the endgame? BFB plans to use the proceeds to expand its Bukit Minyak premises, install a fourth manufacturing line, and broaden its product range. It manufactures coffee and tea extract powder blends and trades food ingredients and instant beverage premixes through its subsidiaries.
Why now? The company is riding beverage trends. In February 2026, it opened a dedicated matcha powder line with annual capacity of 312 metric tonnes, citing "the rising popularity of matcha."
Chief executive officer Lee Mong Khai said the funds leave BFB "well-positioned to accelerate our strategic growth plans." The ministry of investment, trade, and industry also approved a private placement of 72 million existing shares to bumiputera investors, which has been completed.
The signal: Upon listing, BFB is expected to reach a market capitalisation of about RM384 million, based on 800 million shares at RM0.48 each. The heavy oversubscription points to solid retail appetite for consumer food and beverage listings on Malaysia's ACE Market, which caters to smaller growth companies. M & A Securities Sdn BhdDealroom has a profile for this one. Try Dealroom → is the principal adviser, sponsor, underwriter, and placement agent.
Image credit: Generated with Gemini
