HSS Holdings IPO: Johor Bakery Group Lists on ACE Market at RM0.18
Update June 2026: After filing its prospectus, Johor-based bakery group HSS Holdings Bhd has now fixed its IPO price at RM0.18 (18 sen) per share and confirmed its listing on the ACE Market of Bursa Malaysia on 23 June 2026. The full offering raises gross proceeds of around RM22.95 million, making it one of the consumer-sector listings drawing retail investor attention this year.
The bakery products group is offering 75 million new shares via a public issue, alongside 52.5 million existing shares through an offer for sale. M&A Securities Sdn Bhd acts as Principal Adviser, Sponsor, Underwriter, and Placement Agent.
HSS Holdings IPO at a Glance
Before diving into the details, here are the key facts of the HSS Holdings IPO you need to know.
| Detail | Information |
|---|---|
| Offer price | RM0.18 (18 sen) per share |
| Market | ACE Market, Bursa Malaysia |
| Public issue (new shares) | 75 million shares (~RM13.5 million) |
| Offer for sale (existing shares) | 52.5 million shares (~RM9.45 million) |
| Total gross proceeds | ~RM22.95 million |
| Market capitalisation | RM90 million |
| Enlarged share capital | 500 million shares |
| Price-to-earnings (P/E) | 10.5 times (based on FY2025 earnings) |
| Principal Adviser | M&A Securities Sdn Bhd |
| Listing date | 23 June 2026 |
Business Overview and Expansion Direction
HSS Holdings operates several bakery brands and central kitchens in Johor through its subsidiaries — HSS Bakery Sdn Bhd, HSS Food Industries Sdn Bhd, and HSS Central Kitchen Sdn Bhd. The group's core activities span sourcing, trading, and manufacturing of bakery products.
Proceeds from the public issue will be channelled mainly towards:
- Upgrading manufacturing capabilities — including a new biscuit production line, enhancements to existing cookie lines, backend process automation, and a new automated cake production line;
- Repaying bank borrowings;
- Strengthening working capital; and
- Covering listing expenses.
HSS director Joshua Lau noted that current production capacity utilisation averages around 70%, leaving room to absorb sales growth without immediate heavy capital investment.
Use of IPO Proceeds (RM13.5 Million)
From the RM13.5 million public issue gross proceeds, the company plans to deploy funds as follows:
| Purpose | Amount (RM million) |
|---|---|
| Capital expenditure (manufacturing facilities) | 2.57 |
| Bank borrowing repayment | 4.50 |
| Working capital | 2.93 |
| Listing expenses | 3.50 |
| Total | 13.50 |
Understanding how a company uses its IPO proceeds helps assess whether the listing is for genuine growth or simply an exit for existing shareholders. Read more on this in our guide to analysing IPO use of proceeds.
HSS Holdings Financial Performance
For the financial year ended 31 December 2025 (FY2025), HSS recorded revenue of RM144.4 million with net profit of RM8.6 million. Compared to the prior year:
| Financial Year | Revenue (RM million) | Net Profit (RM million) |
|---|---|---|
| FY2024 (31 Dec 2024) | 160.22 | 7.8 |
| FY2025 (31 Dec 2025) | 144.4 | 8.6 |
Interestingly, although revenue declined from RM160.22 million to RM144.4 million, HSS's net profit actually rose from RM7.8 million to RM8.6 million. This points to better cost control and margins - a positive sign of operational efficiency. Even so, investors should understand the reason behind the revenue decline before deciding, as slow top-line growth can be a concern for a newly listed company.
Main Revenue Streams
HSS generates income from three main streams:
- Retail sales - daily customers at its bakery outlets (the largest contributor).
- Wholesale supply - distribution of bread and cakes to supermarkets, convenience stores, and cafes.
- Contract manufacturing - producing private-label products for corporate clients.
Offer Structure and Share Allocation
Of the 75 million new shares (public issue) offered, the allocation is as follows:
- 25 million shares to the Malaysian public;
- 10 million shares to Bumiputera investors approved by MITI;
- 10 million shares to eligible directors and employees; and
- 30 million shares via private placement.
In addition, 52.5 million existing shares are sold by selected shareholders through the offer for sale, raising about RM9.45 million for the sellers (not for the company). To understand the difference between money that goes into the company and money that goes to existing shareholders, see our guide on the difference between public issue, offer for sale and private placement.
Valuation: Is RM0.18 Worth It?
At the IPO price of RM0.18, HSS is valued at a market capitalisation of RM90 million with a P/E of 10.5 times based on FY2025 net profit (RM8.6 million). A P/E of around 10 times is fairly moderate for the consumer and food sector on Bursa - neither expensive nor a notable bargain. Investors should weigh the growth potential from capacity expansion and automation against the risks of dependence on the Johor market and intense competition in the bakery industry.
Competitive Strengths
Among HSS's key strengths:
- Full vertical integration - control of the chain from raw materials through to final product distribution.
- Semi-automation - improving efficiency and product quality consistency.
- Local brand strength - well established in Johor with a loyal customer following.
- Own logistics network - ensuring freshness and on-time delivery.
Together, these factors allow HSS to maintain stronger profit margins than smaller bakery operators.
Industry Landscape and Competitors
Malaysia's bakery industry is competitive, dominated by big names such as Rotiboy, Lavender, RT Pastry, and Gardin Bakery. HSS, however, takes a different approach - it focuses on the affordable segment with an "everyday bread for everyone" concept. Its value pricing and efficient production scale give it a cost advantage over rivals targeting the premium market.
Moratorium Period
HSS's founders and major shareholders will be subject to a six-month moratorium after listing. After that period, they may only sell a maximum of 20% every six months over the following 18 months - ensuring management's commitment to the company's stability post-listing.
Key IPO Dates for HSS Holdings
| Event | Date |
|---|---|
| IPO applications open | 29 May 2026 |
| Applications close | 9 June 2026 |
| Balloting | 11 June 2026 |
| Share allotment | 19 June 2026 |
| Listing on ACE Market | 23 June 2026 |
How to Apply for the HSS Holdings IPO
The public portion (25 million shares) is open to the Malaysian public. You can apply through participating bank ATMs, your bank's internet banking, or the online platforms provided by your stockbroker. Applications close on 9 June 2026, with balloting on 11 June 2026 and listing on 23 June 2026. Importantly - to apply for an IPO and trade shares on Bursa Malaysia, you need a CDS account and a trading account with a licensed broker. For a step-by-step walkthrough, see our guide on how to apply for an IPO in Bursa Malaysia.
Smart Investor Guide: Avoid the IPO Hype Trap
Before retail investors rush to apply for an IPO through apps such as M+ Global, there are a few important steps worth taking. Buying an IPO is not just about following the "hype" - it should be grounded in fundamental research so that decisions are based on facts, not emotion. Assess the IPO price against earnings (P/E), understand the use of proceeds, and study the financial track record before deciding. For a structured approach, read our IPO investing strategy to minimise risk.
Frequently Asked Questions (FAQ)
What is the HSS Holdings IPO price?
The HSS Holdings IPO price is fixed at RM0.18 (18 sen) per share for its listing on the ACE Market of Bursa Malaysia.
When is the HSS Holdings listing date?
HSS Holdings is scheduled to list on the ACE Market on 23 June 2026. IPO applications open on 29 May 2026 and close on 9 June 2026, with balloting on 11 June 2026.
How much is HSS Holdings raising through the IPO?
The full offering raises gross proceeds of around RM22.95 million - RM13.5 million from 75 million new shares (public issue) and RM9.45 million from 52.5 million existing shares (offer for sale).
What is HSS Holdings' market capitalisation and P/E?
At the IPO price of RM0.18, HSS has a market capitalisation of RM90 million with an enlarged share capital of 500 million shares, and a P/E of 10.5 times based on FY2025 earnings.
What is HSS Holdings' financial performance?
For FY2025 (ended 31 December 2025), HSS recorded revenue of RM144.4 million and net profit of RM8.6 million, compared with revenue of RM160.22 million and net profit of RM7.8 million in FY2024.
How will HSS Holdings use the IPO proceeds?
From the RM13.5 million public issue: RM2.57 million for manufacturing capital expenditure, RM4.50 million to repay bank borrowings, RM2.93 million for working capital, and RM3.50 million for listing expenses.
What is HSS Holdings' core business?
HSS generates income from three main streams: retail sales at its bakery outlets, wholesale supply to supermarkets and convenience stores, and contract manufacturing for corporate clients.
Conclusion
The HSS Holdings IPO gives investors access to an established Johor bakery group with full vertical integration and a clear expansion plan. At RM0.18 with an implied P/E of 10.5 times, the valuation looks moderate, but like all ACE Market IPOs, investors should weigh growth prospects against industry risks and the typical early-trading volatility of small caps.
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Further Reading
- IPO in Bursa Malaysia: What It Is, How to Apply & Investor Strategy
- Difference Between Public Issue, Offer For Sale and Private Placement in IPO
- Introduction to IPO Promoters and Major Shareholders
- IPO Investing Strategy: 6 Ways to Minimise Risk and Losses
- How to Analyse IPO Use of Proceeds: A Prospectus Guide for Beginners