TSH Resources makes SGX debut to strengthen Singapore presence, amid rising palm oil prices

Malaysia-based plantation group, TSH Resources, started trading on the Mainboard of the Singapore Exchange (OTC:SPXCY) (SGX) under the stock code "TSH" on Tuesday. The company, which primarily engages in oil palm cultivation and processing of fresh fruit bunches into crude palm oil (CPO) and palm kernel (PK), views this secondary listing as an opportunity to diversify its shareholder base and improve its trading liquidity.

The move marks a significant step for TSH Resources, which was founded in 1979 and listed on the Kuala Lumpur Stock Exchange in 1994. With operations in Sabah, Malaysia as well as various regions in Indonesia, the company also engages in other businesses including rubber, cocoa, and engineered flooring. As of December 31, 2022, approximately 65.6% of TSH's revenue was derived from customers located outside of Malaysia.

The secondary listing comes at a time when the Malaysian Palm Oil Council (MPOC) forecasts crude palm oil prices could rise above MYR4,300 (S$1,251.92) a metric ton in 2024 - about a 17% jump from current prices after palm oil futures dipped to a nearly three-month low. This prediction is based on factors such as elevated inventories of edible oils, especially from China and India, the price competitiveness of palm oil against other vegetable oils, and increased palm oil production in Indonesia.

In addition to strengthening its presence in Singapore through its secondary listing on SGX, TSH Resources also plans to develop and cultivate its existing land bank and increase its cultivated oil palm plantation land by another 7,000 to 10,000 Ha. The company is looking to acquire existing oil palm plantation estates and plantation reserve land in Malaysia and Indonesia if suitable opportunities arise.

TSH Resources' secondary listing on SGX brings the total number of agrifood companies listed on the exchange with a market cap roughly above S$400 million to 15 – amounting to a combined market cap of about S$40.4 billion. The company's established market capitalization stands at S$405.7 million (MYR 1.39 billion).

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.