Borneo Aqua allocates RM2.7mil for R & D
The Star
6 September 2005

Borneo Aqua Harvest Bhd expects to use RM2.7mil from the proceeds of its listing on the Mesdaq market for research and development (R&D).

The integrated marine aquaculture company, based in Sabah, recognises the value of R&D to remain competitive.

"Every year, the company allocates 1% of its revenue for R&D purposes as this keeps us ahead of our competitors," said managing director Datuk Lo Fui Ming.

He said the fund will be increased if more is required.

Currently, Borneo Aqua's main competitors come from China and Taiwan, Lo said at a press conference after the company's listing on Bursa Malaysia in Kuala Lumpur yesterday. The listing exercise raised RM25.3mil.

Lo said RM18.1mil will be spent to increase its production capacity.

This includes the acquisition of 87 acres to build new ponds, the construction of 400 new sea cages for fish rearing activities and the construction of a new indoor hatchery.

The hatchery, situated in Pulau Palak, Sandakan, will have the capacity to handle about 2 million fish fry per month when it is completed in November.

"Next year, I hope to build an indoor hatchery in the peninsula to cater to fish farmers here," Lo said, adding that the location has yet to be identified.

The company's initial public offer (IPO) shares were initially offered at 99 sen each but, prior to its listing, it had made a bonus issue on the basis of two new bonus shares for every one existing share. It resulted in the shares being given a reference price of 33 sen per share.

Shares of Borneo Aqua closed unchanged at 33 sen after having touched a high of 35.5 sen and a low of 31 sen on strong volume of 12.7 million shares.

For its financial year ended March 31, the company recorded a profit before tax of RM3.3mil and revenue of RM6mil.

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