ACE Market-bound OB Holdings Aims To Raise RM28.8 Mln From IPO
KUALA LUMPUR, Sept 27 (Bernama) -- OB Holdings Bhd (OB Holdings) aims to raise RM28.8 million from its initial public offering (IPO), pursuant to its listing on the ACE Market of Bursa Malaysia on Oct 29.
OB Holdings provides fully customisable, end-to-end manufacturing services for fortified food and beverages (F&B) and dietary supplements to third-party brand owners.
Its managing director Teoh Eng Sia said of the total proceeds, RM14.9 million will be used to repay bank borrowings incurred from the construction of its new factory and land acquisition in Serendah, Selangor.
“The new factory will give us a larger manufacturing space, allowing us to customise the factory layout and optimise the configuration of the machinery,” he said.
He added that the construction for phase one, covering a land area of 210,420 square feet (sq ft), began in January 2024 and is expected to be completed by the first half of 2025.
The company also expects its commercial production to begin by mid-2026 and that the second phase of construction, covering 44,843 sq ft of land, will be developed in the future for expansion plans.
OB Holdings also plans to use RM0.9 million to set up a new laboratory in the new factory and undertake clinical trials for the Bonlife SachaQ10 Plus Softgel, its new product.
The remaining funds will be utilised for general operational purposes, including RM1 million for marketing and advertising activities, RM3 million for working capital, and RM4 million to cover IPO-related expenses.
According to the prospectus, the company will have a market capitalisation of RM93.99 million and an enlarged issued share capital of 391.63 million shares.
It said the IPO will involve the issuance of 120 million new ordinary shares, representing 30.6 per cent of the company’s enlarged issued share capital.
Applications for the public issue are open from today and will close on Oct 15, 2024, at 5 pm.
-- BERNAMA