ACE Market Debutant RT Pastry Eyes East Coast Expansion
KUALA LUMPUR, June 29 (Bernama) -- ACE Market debutant RT Pastry Holdings Bhd plans to channel its initial public offering (IPO) proceeds into expansion in the East Coast due to strong untapped demand and limited competition from retail bakery chains, chief operating officer Tia Yu Hoo said.
Tia said the company is strengthening its presence on the East Coast to better serve customers in the region while accelerating its expansion plans to reach more Muslim consumers and the wider market.
“Tentatively, we are targeting Kuantan, Pahang first; then, we will move to other places (in the East Coast region) by next year,” he said at the company’s listing ceremony today.
At 9 am, the pastry and bakery products company made its ACE Market debut at 17.5 sen, a 0.5 sen discount from its IPO price of 18 sen, with 68.28 million shares traded.
Commenting on the share price performance, Tia said the company had hoped for a stronger market debut and would continue working to deliver sustainable growth.
“Definitely, we want to be green and will work harder from quarter to quarter so that we can bring more profit to the growth and to the shareholders,” he said, noting that the company aims to achieve at least 10 per cent annual sales growth every year.
Asked whether RT Pastry plans to expand into overseas markets, Tia said such a move is not on the cards for now but remains part of the company’s longer-term plans.
“Not at this moment, but definitely we will explore this in the future,” he said.
On plans for a new manufacturing facility, Tia said the company aims to identify a strategic location or suitable premises by the fourth quarter of this year before commencing the necessary works.
“The company aims to identify the strategic places or the premises by the last quarter of this year. Afterwards, then we will commence whatever is necessary,” he said.
The ACE Market debutant said it is using its IPO as a springboard to transform itself into a vertically integrated food manufacturing platform by combining nationwide retail expansion with a fast-growing original equipment manufacturer (OEM) business serving third-party cafes and food retailers.
“The one that we are discussing, actually, we will customise OEM products for them so that it will be slightly differentiated from our retail outlets and to create more value for the corporate customers as well.
“It depends on their requirements and the product quality,” Tia said.
On its distribution business, Tia said the company is currently in discussions and negotiations with wholesalers and corporate customers to broaden its sales channels.
“Soon, you will see there are more sales channels through the wholesalers and corporate entities,” he said.
RT Pastry currently operates 18 outlets following the opening of its latest branch in Taman Equine last month.
The company also operates two central manufacturing facilities in Seri Kembangan and Shah Alam, focusing on pastry and bread production, respectively.
-- BERNAMA