This text first appeared in The Edge Malaysia Weekly on July 7, 2025 – July 13, 2025
KOH Ah Kuan, the founder and managing director of ACE Market-bound A1 AK Koh Group Bhd (KL:A1AKK), has come a good distance from mixing natural prune powder in his house kitchen to constructing a multi-million-ringgit meals and beverage (F&B) manufacturing enterprise.
“I used to be incomes RM200 a month working at a conventional Chinese language herb retailer once I observed restaurant homeowners coming in to purchase and blend varied herbs and spices to organize their broths and soups.
“I noticed their strategies and started to be taught the foundations of their recipes,” the 63-year-old self-made businessman tells The Edge in an unique interview at A1AKK’s headquarters in Senai, Johor.
Drawing on his background in conventional Chinese language herbs and medication, Koh began the enterprise in 1986, with simply RM4,000 in seed capital and a home-made prune powder recipe that rapidly gained traction amongst native customers.
“The response was very constructive, so I established Koh Enterprise and began exporting to Singapore to slowly construct the muse of the group.
“Utilizing my expertise in conventional Chinese language herb shops, I continued to develop my very own recipes, and by 1988, we launched our very first star product that’s nonetheless considered one of our best-selling merchandise — the natural soup spices, which many individuals affiliate with our model immediately,” he recollects.
A big growth occurred in 1995, when Koh moved his companies right into a headquarters and manufacturing unit in Taman Universiti, Johor, the place he additional scaled up manufacturing.
“In 2005, we moved to our present large-scale manufacturing unit and headquarters in Senai, which actually allowed us to develop our manufacturing capabilities. And in 2012, we had been appointed as the only real distributor for WANT WANT Child Bites in Malaysia, which was one other essential milestone for us,” he says.
Immediately, A1AKK — named after its founder — is a Johor-based processed F&B producer with a variety of in-house branded merchandise, together with premixed spices, pre-made pastes, seasonings for fast noodles and premixed drinks.
The group additionally markets a broader assortment of snacks, dried noodles, canned seafood (primarily abalone) and ready-to-drink drinks by means of third-party producers, together with some based mostly in China.
In whole, A1AKK has over 340 stock-keeping models. The group operates two manufacturing services in Senai, Johor and Lengthy An Province, Vietnam. It exports to over 16 markets, together with China, the US, Taiwan, Hong Kong, the UK and Japan.
Nonetheless, A1AKK might be finest recognized for its flagship product — the premixed natural soup spices, typically related to “meat ribs soup”.
Standard amongst Malaysians overseas — significantly college students craving a style of house — the product stays totally manufactured in-house, as the corporate doesn’t outsource owing to its proprietary recipe.
Malaysia is A1AKK’s major market, contributing to about 80% of the group’s turnover, with Singapore and Vietnam being the second and third largest income contributors, respectively.
Revisiting IPO
A1AKK explored a Important Market itemizing on Bursa Malaysia in 2014 underneath the identify AK Koh Group Bhd. At the moment, nonetheless, the corporate was not totally prepared by way of inner construction and strategic alignment.
“After a second [round of] cautious consideration, the administration made a aware resolution to redirect the give attention to strengthening our fundamentals, increasing capability and rising our export base earlier than revisiting the general public capital markets,” says Koh.
Over the previous 10 years, he provides, A1AKK has expanded its buyer base, distribution channels and product vary to additional solidify the muse of its enterprise.
“Immediately, we’re in a stronger place — operationally, financially and strategically. We imagine going [for an] IPO (preliminary public providing) on the ACE Market now’s proper [in terms of] timing and alternative for us to raised replicate our present development trajectory.
“We have now a transparent growth plan to completely utilise the funds raised on this IPO, and we’re assured that the plan will materialise, making A1AKK a beautiful funding for traders who’re eager on high-growth corporations,” he says.
Koh believes the F&B business is “eternal” and due to this fact, the proper technique is to constantly search for the right match that may fulfil and appeal to the at all times altering style buds of the general public in order that A1AKK’s enterprise shall be sustainable in the long run.
The itemizing scheduled for this Friday (July 11) entails 218.4 million unusual shares, or 26% of its enlarged share base, comprising 109.2 million new shares and a suggestion on the market of 109.2 million current shares. Priced at 25 sen apiece, the brand new shares will increase RM27.3 million in gross proceeds for the group.
Upon itemizing, A1AKK can have an enlarged share capital of 840 million shares, with a market capitalisation of RM210 million at its IPO worth, valuing the agency at practically 18 occasions its most up-to-date earnings.
A1AKK CEO and govt director Koh Lian Jie, Koh’s 36-year-old son, says the majority of the IPO proceeds shall be used to fund the development of a brand new manufacturing unit, improve its current manufacturing facility, and put money into advertising and marketing and promotional actions. “This capital injection will allow us to speed up our development plans each domestically and internationally.”
A1AKK plans to construct a brand new manufacturing unit, adjoining to the group’s current manufacturing facility in Senai, particularly to broaden its manufacturing of pre-made pastes.
“This new facility is anticipated to accommodate a brand new semi-automated manufacturing line that may double our annual manufacturing capability for pre-made pastes, from 468 to 936 tonnes. Building is anticipated to start within the fourth quarter of this 12 months,” says Lian Jie.
The group additionally intends to improve its current manufacturing facility in Johor by buying new equipment.
“This features a high-speed packing machine, a bundle packing machine and retort sterilisation machines. The objective is to reinforce our operational productiveness, enhance effectivity and lengthen the shelf lifetime of our merchandise,” says A1AKK chief working officer and govt director Koh Chung Jie, Koh’s 32-year-old son.
After the IPO, A1 Koh Malaysia Sdn Bhd, the founding household’s personal car, will retain a 74% stake in A1AKK. The shareholders of A1 Koh Malaysia embody founder Koh (60%), his spouse Lim Sok Huey (30%) and their 4 kids.
On July 3, A1AKK introduced that the general public portion of its IPO of 42 million shares was 1.11 occasions subscribed. AmInvestment Financial institution is the principal adviser, sponsor, underwriter and placement agent for the IPO.
In a analysis report dated June 30, Tradeview Analysis senior analyst Tan Jia Hui has a “impartial” name on A1AKK, with a goal worth of 27 sen, implying an upside potential of 8%. Her goal worth relies on monetary 12 months ending June 30, 2026 (FY2026) price-earnings ratio of 18 occasions, which is beneath its oblique packaged meals friends’ common PER of twenty-two occasions, attributed to A1AKK’s smaller market capitalisation and lack of near-term development catalysts.
“Shifting ahead, we undertaking earnings of RM11.5 million for FY2025 and RM12.7 million for FY2026. The slight drop in FY2025 is probably going on account of a weaker contribution from the Vietnam plant amid softer demand.
“Nevertheless, we stay optimistic about FY2026’s efficiency, pushed by a greater product combine and higher penetration into the Horeca (resort, restaurant, and catering) section, which is anticipated to herald extra bulk purchases and enhance operational effectivity,” she writes.
A1AKK produces a variety of in-house branded merchandise, together with premixed spices, pre-made pastes, seasonings for fast noodles and premixed drinks. (Picture by Liew Jia Teng/The Edge)
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