MyAxis Group makes strong debut on LEAP Market, plans RM11.3m capex to expand processing capacity

The Sun

30-06-2025

KUALA LUMPUR: Meat processor and distributor MyAxis Group Bhd plans to invest RM11.3 million in capital expenditure (capex) to expand its processing capacities following its LEAP Market debut.
MyAxis intends to double its poultry capacity to 708,000 kg from 336,000 kg and triple red meat handling to 1.87 million kg from 624,000 kg.
'The investment will include an increase in the group's annual cold storage capacity by more than 10 times to 566,000 kg to cater for the increasing meat processing volume,' it said in a statement.
The investment will be funded by bank borrowings, and internally generated funds, as well proceeds from its initial public offering (IPO) .
Executive chairman Datuk Tan Hwa Sing said the operations of the new halal-certified processing facility are expected to commence in the next six to nine months.
'Hopefully, by the second quarter of next year, 2026, it will be able to contribute to our revenues. We are just waiting for the funds (IPO proceeds) to come in. From there, we will be able to move faster and expedite,' he said in a press conference after the listing ceremony today.
The new processing facility is located near the Malaysia-Thailand border at Bukit Kayu Hitam with a built-up area of 17,567.7 square feet. The location helps in enhancing container security and ensuring product quality for frozen meats imported from Thailand.
MyAxis is currently focused on the domestic market with supplies sourced from Thailand and China in an even 50:50 ratio.
MyAxis opened at 18 sen on Bursa Malaysia's LEAP Market, a six-sen premium over its IPO price of 12 sen.
Tan said the opening price reflects the market's confidence in myAxis of its growth potential, business model, and strategic development in the meat processing sector. 'We are very satisfied with the opening price.'
The stock closed at 23 sen, 11 sen or 91.7% above the IPO price.
Tan said the group is eyeing a transfer to the ACE Market within two years following its debut.
He said the group plans to remain on the LEAP Market for two years while fully utilising funds raised from its IPO.
'By the end of 2026, we can talk to Bursa about transferring to the ACE Market. In July or early next year, production will start, and once the funds are fully utilised, only then can Bursa consider it (the transfer),' he disclosed.
MyAxis has a dividend policy of paying 20.0% of net profit to the shareholders. The policy will be effective from the financial year ending July 31, 2026.
MyAxis' IPO on the LEAP Market entailed a public issue of 44.1 million new shares to sophisticated investors, at an issue price of 12 sen per share, representing 12.9% of the enlarged share capital of the company.
The overall value of the IPO is worth RM5.3 million. Out of the total proceeds of RM5.3 million, RM600,000 will be utilised for the purchase of machinery for its new meat processing facility, RM200,000 for brand building to strengthen awareness through promotions and advertising efforts and activities.
A further RM3 million will be allocated for repayment of borrowings; RM500,000 for working capital and the remaining RM1 million for defraying listing expenses. The market capitalisation of MyAxis upon listing will amount to RM40.1 million.
Zico Evolve Capital Sdn Bhd serves as the adviser for MyAxis' IPO exercise.