Borneo Aqua expects to record double-digit growth
Business Times
9 August 2005

Marine-based company Borneo Aqua Harvest Bhd (Borneo Aqua) expects to record double-digit growth with its entry into new markets namely South Korea and Japan by early 2006.

Chief executive officer Datuk Lo Fui Ping said the company is confident of reaching the target based on the increasing demand for its fish products in the two countries.

The Sabah-based company is the investment holding company for Plentiful Harvest Sdn Bhd and Marine Terrace Sdn Bhd which are involved in the breeding, hatching and rearing of high commercial value marine fishes in the Asia-Pacific region.

Borneo Aqua currently markets its products to Hong Kong and mainland China.

"The entry into South Korea and Japan will increase our overseas business up to 75 per cent from the current 45 per cent by the end of next year," he told reporters after the launch of the company's prospectus by Sabah Chief Minister Datuk Musa Aman in Sandakan over the weekend.

The company's current financial year will end on March 31 2006.

Borneo Aqua also plans to increase its capacity to handle mass production of high commercial value fish fry and adult fish.

"This will be through, among others, construction of new cages and fish ponds for broodstock culturing, hatchering and fish rearing activities, and the construction of a new indoor hatchery on Pulau Palak," he said.

Borneo Aqua will be the first Sabah-based and marine biotechnology company to be listed on the Malaysian Exchange of Securities Dealing & Automated Quotation Bhd market of Bursa Malaysia Bhd. The tentative date for the listing is September 5.

Lo said the company hopes to raise about RM24.75 million from the listing to fund, among others, the construction of the indoor hatchery at Pulau Palak, research and development, expansion of land and listing expenses.

It is issuing a total of 25 million new ordinary shares of 10 sen each with an issue price of 99 sen per share.

Of the total, 2.5 million shares will be made available for the public and eligible directors and employees of the company and its subsidiaries while the remaining 22.5 million shares will be issued by way of private placement to identified investors.

Prior to the listing, the company will implement a 2-for-1 bonus issue. With the bonus issue, the issue price is theoretically adjusted to 33 sen per share.

Commerce International Merchant Bankers Bhd is the adviser, sponsor, underwriter and placement agent of the exercise.

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