RT Pastry Launches IPO Prospectus

Bakery chain RT Pastry taking orders for IPO shares at 18 sen apiece

KUALA LUMPUR (June 5): RT Pastry Holdings Bhd, which runs a chain of eponymous bakeries, on Friday began taking orders from investors for its ACE Market listing at 18 sen per share.

The initial public offering (IPO) is expected to raise RM16.5 million for the company’s operations and expansions, according to the official prospectus. There is no accompanying offer for sale, meaning that existing shareholders are not cashing out under the IPO.

Applications will close on June 15, and the listing has been scheduled for June 29.

RT Pastry is founded and headed by Lu Chun-Neng, a 47-year-old Taiwanese who set up the first store in 2003 with his wife’s family. Lu enrolled in a short baking course in 1994 while working at a bakery in Taiwan.

He went on to work at various bakeries, including as the head chef of Singapore-based BreadTalk before relocating to Malaysia. The company, based in Seri Kembangan, now operates 17 outlets, and all of them are in the Klang Valley.

From left: RT Pastry Holdings Bhd independent non-executive chairman Leou Thiam Lai, and executive director and group CEO Lu Chun-Neng with KAF Investment Bank Bhd CEO Rohaizad Ismail and head of corporate finance Ahmad Fazlee Aziz at its prospectus launch on Friday.

The company will be using 46% of the proceeds to open another four outlets in the Klang Valley and two in Pahang over the next two years. The plan also calls for new equipment, such as depositors and cake-cutting machines, involving about 5% of the IPO proceeds.

The remaining 48% of the funds raised will go towards repayment of bank borrowings and to cover listing expenses.

For the year ended Dec 31, 2025, RT Pastry made a net profit of RM6 million on revenue of RM60 million. Based on the IPO price, the company will have a market capitalisation of RM61 million upon listing and is valued at about 10 times its latest earnings.

Post-IPO, Lu will continue to run the company as its chief executive officer and hold about 26% in RT Pastry. Lu’s father-in-law, Lian Ming Wah, and his three uncles will remain as shareholders without any executive role. The senior management of RT Pastry are all unrelated to the major shareholders.

KAF Investment Bank is the principal adviser, sponsor, underwriter, and placement agent for the IPO.

Source: https://theedgemalaysia.com/node/805948