OB Holdings Berhad (“OB Holdings), a fortified food and beverages (F&B) and dietary supplements manufacturing services provider, has generated positive investor interests for its initial public offering (IPO), which has been oversubscribed by 109.47 times ahead of its listing on the ACE Market.
With 29 years of experience in the fortified F&B and dietary supplements industry, OB Holdings and its subsidiaries offer fully customisable, end-to-end manufacturing services to third party brand owners.
The group’s in-house expertise in product formulation allows it to produce a diverse range of products in various forms, including vegetable softgel capsules, hard capsules, tablets (including effervescent tablets), teabags, liquid beverages, powder mixes and jelly.
In addition, the Group manufactures, sells, and markets products under its own house brands, Bonlife, GoHerb, Zen Night, Sleepin’ Beaute, EZ:Nitez, Beyoute, Zen Youte, and Zenliv.
The group’s IPO entails a public issue of 120.00 million new ordinary shares at an issue price of RM0.24 per share.
This accounts for 30.64% of the enlarged issued share capital, with RM28.80 million expected to be raised from the public issue
OB Holdings Group has received 22,753 applicants for a total of 2,163.19 million issue shares, valued at approximately RM519.16 million for the 19.58 million issue shares allocated to the entire Malaysian public, representing an overall oversubscription rate of 109.47 times.
For the bumiputera portion, 11,375 applicants for 969.26 million issue shares were received, resulting in an overall subscription rate of 97.99 times.
For the remaining public portion, 11,378 applications were received for 1,193.93 million issue shares, resulting in an oversubscription rate of 120.94 times.
The 7.83 million issue shares available for application by the eligible directors, employees and persons who have contributed to the success of OB Holdings Group have been fully subscribed.
In respect of the private placement, the 43.63 million issue shares allocated to selected investors and the 48.95 million issue shares allocated to Bumiputera investors approved by the Ministry of Investment, Trade and Industry have also been fully placed out.
Notice of allotment will be posted to all successful applicants by 25 October 2024.
“A significant portion of these proceeds, amounting to 72.22%, will be allocated to fuel our business expansion initiatives. This includes the repayment of bank borrowings associated with the construction of our new Serendah Factory,” said OB Holdings Managing Director Teoh Eng Sia.
“Additionally, we will invest in new machinery to bolster our manufacturing capacity, set up a new laboratory within the Serendah factory to expand our product development activities, and fund a clinical trial for our Bonlife SachaQ10 Plus Softgel,” he said.
“These strategic investments will not only enhance our production capabilities but also drive product innovation and instil greater consumer confidence in our products,” he added.
OB Holdings Group is scheduled to be listed on the ACE Market of Bursa Securities on Tuesday, 29 October 2024.
Upon listing, the Group will have a market capitalisation of approximately RM93.99 million based on an issue price of RM0.24 per share and the enlarged issued share capital of 391.63 million Shares.
Alliance Islamic Bank is the Principal Adviser, Sponsor, Sole Underwriter and Placement Agent for the IPO exercise. – Oct 18, 2024
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