KUALA LUMPUR: Enest Group Bhd, a bird’s nest processor and trader, is investing RM12 million in a new manufacturing facility in Kajang, Selangor, to strengthen its downstream manufacturing capabilities.
The facility, which is under construction, will manufacture bottled bird’s nest and herbal beverages with an annual production capacity of about 300,000 bottles, while relocating and consolidating the group’s existing bird’s nest processing operations.
Chief financial officer Christopher Tan Yew Leong said the project will be financed with bank borrowings and internally generated funds rather than proceeds from the company’s initial public offering (IPO) as the project will take several years to complete before the necessary regulatory approvals are obtained.
“We do not want to tie down the IPO proceeds because the construction period is long. We’ll fund the project through our own resources and borrowings,“ he said on the sidelines after the company’s prospectus launch today.
The facility is expected to be completed in 2027, with commercial operations targeted around the second quarter of 2029 after the company secures approval from China’s General Administration of Customs (GACC), which is required before products manufactured at the new facility can be exported to the country.
Enest’s origins date back to 2015, when it operated from a rented 4,160 sq ft shophouse in Kajang processing raw clean edible bird’s nest for local distributors.
Within a year, the group secured its first export order to Hong Kong before expanding into Australia and Singapore.
A major turning point came in 2018 when Enest acquired Dynamic Transforms, adding processing capacity and gaining immediate access to the China market through a GACC-registered facility in Batu Caves.
In the same year, its Kajang processing facility also obtained GACC registration, allowing direct exports to China.
The company later established Ye Lin Industrial (Shanghai) Co Ltd to manage imports and customs clearance, enabling it to supply retailers in China directly instead of relying solely on importers and distributors.
As demand grew, Enest expanded its Kajang operations by leasing adjoining premises, more than doubling its operating space from 4,160 sq ft to 9,464 sq ft.
The company subsequently diversified beyond processing and trading edible bird’s nests.
In 2022, it introduced its first ready-to-drink health beverage, Rejuvnest, developed with a contract manufacturer using its bird’s nest ingredients.
A year later, the company launched bottled bird’s nest products under the Enest brand, which are also produced by third-party manufacturers.
The new Kajang facility will allow the company to internalise production of these products, reducing reliance on contract manufacturers while giving it greater control over product quality, manufacturing schedules and new product development.
The investment is in line with Enest’s strategy of moving further downstream in the edible bird’s nest value chain.
Besides increasing manufacturing capacity, the company plans to broaden its customer base in China, particularly among traditional Chinese medicine and wellness product manufacturers, while expanding exports of raw unclean bird’s nest and developing new premium bottled bird’s nest products.
China remains the group’s largest export market.
Enest aims to raise RM15.11 million through its IPO to strengthen working capital and repay borrowings as the edible bird’s nest processor and trader prepares for its transfer listing from the LEAP Market to the ACE Market of Bursa Malaysia.
The IPO comprises a public issue of 116.25 million new ordinary shares, representing 20% of Enest’s enlarged issued share capital of 581.25 million shares, and an offer for sale of 15.05 million existing shares, representing approximately 2.6% of the enlarged share capital.
Priced at 13 sen per share, the public issue is expected to raise gross proceeds of RM15.11 million, while proceeds from the offer for sale will accrue entirely to the selling shareholders.
Of the funds raised, RM6.41 million will be allocated for working capital, primarily to purchase raw unclean bird’s nest, RM5 million will be used to repay bank borrowings and RM3.7 million will cover listing expenses.
Managing director Tan Teh Jie said the ACE Market transfer marks a significant milestone for the group as it prepares for its next phase of growth.
“The launch of our prospectus marks a significant milestone in Enest’s corporate journey as we take the next step towards our transfer listing to the ACE Market. Since our early beginnings, we have steadily expanded our capabilities, customer reach and market presence within the edible bird’s nest industry.
“Through this IPO, we aim to strengthen our balance sheet, enhance our working capital position and support the next phase of growth for our business,“ he said.
Teh Jie said the working capital allocation would allow the group to procure larger quantities of raw bird’s nests during periods of lower prices to improve supply availability while potentially supporting margins.
“We will use the working capital to buy more raw materials when prices are lower. This gives us an advantage because we can secure inventory during favourable pricing windows.”
Teh Jie said the company’s cash balance increased to RM28.2 million at the end of 2025 from RM9.8 million a year earlier after receiving larger customer deposits and improving collections from trade receivables, following stronger sales.
He attributed the rise in total borrowings to RM24.1 million, from RM17.8 million previously, mainly due to the acquisition of two factory properties, including a facility in NCT Sepang intended for the trading of raw unclean bird’s nests.
For the financial year ended Dec 31, 2025, Enest recorded revenue of RM158.38 million, up from RM146.21 million a year earlier, while net profit eased slightly to RM8.36 million from RM8.43 million as higher finance costs offset stronger sales.
