Butterfield FB opens at 10pct discount despite strong IPO demand

KUALA LUMPUR: Butterfield FB Bhd got off to a bitter start on its ACE Market debut today, opening at 43 sen, five sen or 10.42 per cent below its initial public offering (IPO) price of 48 sen.

The coffee and tea extract powder maker slipped further to 41.5 sen, down 6.5 sen or 13.54 per cent from its IPO price, before clawing back some of the losses.

At 9.18am, Butterfield FB was trading at 44.5 sen, down 3.5 sen or 7.29 per cent, with 24.23 million shares changing hands. It was the third most actively traded stock on the exchange.

The weak debut came after the company's IPO drew strong investor demand, with the public portion oversubscribed by 18.67 times.

Butterfield FB raised RM72 million from the issuance of 150 million new shares.

At the IPO price, the company was valued at RM384 million, equivalent to about 12.6 times its earnings per share of 3.8 sen for the financial year ended March 31, 2026.

Butterfield FB manufactures coffee and tea extract powder blends for food and beverage manufacturers and brand owners.

It has also expanded into matcha powder blends, with a dedicated production line capable of producing 312 tonnes annually.