PETALING JAYA: Butterfield FB Bhd, a manufacturer of coffee and tea extract powder blends, launched the prospectus in conjunction with its initial public offering (IPO) on the ACE Market of Bursa Malaysia.
Butterfield is expected to raise RM72 million from the IPO at a price of 48 sen per share.
Of the proceeds, RM15.2 million (21.1%) will be used to expand the group’s headquarters at Bukit Minyak, Penang. The expansion will support the installation of a fourth manufacturing line with 4,095-tonne capacity along with new machinery and equipment.
A further RM37.8 million (52.5%) will be allocated for working capital, while RM13 million (18.1%) will be used to pursue strategic investments, mergers and acquisition opportunities in companies and manufacturers which are brand owners of instant coffee and tea premix brands.
The remaining RM6 million will be used to defray estimated listing expenses.
Executive director and CEO Lee Mong Khai said the launch of the prospectus and the upcoming IPO mark a significant milestone for Butterfield. “With the proceeds from the IPO, we will be well-positioned to accelerate our strategic growth plans and strengthen our capabilities to capture further opportunities in the growing coffee and tea extract powder blends market.”
Butterfield is involved in manufacturing of coffee extract powder blends and tea extract powder blends, as well as sale and trading of food ingredients and instant beverage premixes.
The group’s broad product portfolio comprises 98 formulations of coffee extract powder blends, 53 formulations of tea extract powder blends, 278 stock keeping units (SKU) of food ingredients and 36 SKU of instant beverage premixes.
This enables the group to meet the diverse requirements of customers across domestic and international markets.
Butterfield is headquartered in Bukit Minyak, where it operates its manufacturing facility. The group also operates branches in Samut Prakan and Songkhla, Thailand.
To meet growing customer demand, the group recently more than doubled its annual manufacturing capacity from 4,095 tonnes to 8,502 tonnes.
This was achieved by setting up a second production line with an annual capacity of 4,095 tonnes in January, followed by a third production line in March with an annual capacity of 312 tonnes, dedicated to matcha-based tea extract powder blends.
Butterfield’s IPO comprises a public issuance of 150 million shares, representing 18.8% of its enlarged share capital, as well as an offer for sale of 72 million shares, or 9% of its enlarged share capital, via private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti) and selected investors.
Of the 150 million new shares, 40 million shares will be made available to the Malaysian public via balloting, 16 million shares to eligible directors, employees and persons who have contributed to the success of the group (pink form allocations), while the remaining 94 million shares will go towards private placements to Bumiputera investors approved by Miti.
Upon listing, Butterfield is expected to have a market capitalisation of RM384 million based on an enlarged issued share capital of 800 million shares and an IPO price of 48 sen per share.
According to an independent market research report by Smith Zander International Sdn Bhd, Malaysia’s coffee and tea extract powder blends industry grew from RM1.17 billion in 2022 to RM1.81 billion in 2025, representing a compound annual growth rate of 15.65%.
Growth was driven by rising demand for instant beverage premixes and ready-to-drink beverages as consumers increasingly seek convenient options to suit their fast-paced lifestyles.
“Butterfield plays a key role in supplying consistent high-quality coffee and tea extract powder blends that enable manufacturers to develop convenient products for consumers. As the market continues to expand, we will remain focused on product innovation, new product development and regional expansion to meet the evolving needs of the market.”
For the financial year ended April 30, 2026 (FY26), Butterfield’s revenue increased by 10.9% year-on-year (YoY) to RM272.1 million, while net profit rose by 15.2% YoY to RM35 million.
The improved performance was largely attributed to higher contributions from the manufacturing segment, which remained the group’s primary revenue driver at 78.1%, followed by the sales and trading segment at 21.9%.
Overseas sales accounted for 43.0% of group turnover, with the balance from domestic sales.
Butterfield is scheduled to be listed on the ACE Market on Sept 15.
M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for Butterfield’s IPO.
