KUALA LUMPUR: OB Holdings Berhad (“OB Holdings”) , a fortified food and beverages (“F&B”) and dietary supplements manufacturing services provider, has successfully launched its prospectus today in conjunction with its upcoming initial public offering (“IPO”) and listing on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”).
OB Holdings and its subsidiaries (collectively known as the “OB Holdings Group” or “Group”) provides fully customisable, end-to-end manufacturing services of fortified F&B and dietary supplements to third party brand owners. Supported by in-house capabilities in development of product formulations, the Group manufactures products in a variety of forms comprising 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.
Managing Director of OB Holdings, Mr. Teoh Eng Sia said, “The successful launch of our prospectus marks a significant milestone in our journey towards listing on the ACE Market of Bursa Securities. The upcoming listing will provide us with an enhanced platform to raise capital and accelerate our growth plans, enabling us to expand our operations and strengthen our market presence.”
“Our upcoming IPO comes at an opportune time, coinciding with a growing demand for fortified F&B and dietary supplements. This heightened interest is fuelled by growing health awareness stemming from rising rates of chronic diseases, coupled with the increase in disposable income of the Malaysian, urbanisation, and the expanding ageing population. Moreover, the prevalence of social media marketing and the growing popularity of e-commerce platforms position us to reach a broader customer base and enhance our market presence.”
“To capitalise on the growing demand fortified F&B and dietary supplements, we plan to improve our manufacturing efficiency by constructing a new Serendah Factory. This move will enable us to optimise our manufacturing workflow and position us to cater to the increasing demand for our products and services. In addition to the new factory, we will purchase new machines and establish a new laboratory to expand production, introduce new products, and enhance our research capabilities. We will also conduct a clinical trial for Bonlife SachaQ10 Plus Softgel to enhance consumers’ confidence by providing third party verification of our product’s efficacy and strengthen our brand reputation as a provider of scientifically-driven nutrition.”
From the RM28.8 million to be raised through the IPO, a majority will be allocated to fund the Group’s expansion plans. Specifically, RM14.90 million (51.74%) will be used to repay bank borrowings incurred from the construction of the new Serendah Factory. RM5.00 million (17.36%) is earmarked for the purchase of new machines, while RM0.90 million (3.12%) will be used to set up a new laboratory in the new Serendah Factory and undertake the clinical trial for the Bonlife SachaQ10 Plus Softgel.
The remaining funds will be utilised for general operational purposes, including RM1.00 million (3.47%) for marketing and advertisement activities, RM3.00 million (10.42%) for working capital, and RM4.00 (13.89%) million to cover IPO-related expenses.
For the financial year ended 31 May 2024, the Group reported a profit after tax (“net profit”) of RM5.50 million against a revenue of RM50.89 million. After adjusting for listing expenses and an under accrual of real property gains tax related to a property disposed in the prior year, the Group’s adjusted net profit amounted to RM6.25 million.
The Group’s IPO exercise comprises of a public issuance of 120.00 million new ordinary shares in OB Holdings (“Shares”), representing 30.64% of its enlarged issued share capital. Of which, 19.58 million will be made available for application by the Malaysian Public via balloting, 7.83 million Shares to its eligible Directors, employees and persons who have contributed to the success of the Group (“Pink Form Allocation”), 43.63 million Shares to selected investors via private placement, and the remaining 48.95 million Shares will be allocated by way of private placement to identified Bumiputera investors approved by the Ministry of Investment, Trade and Industry of Malaysia.
With an enlarged issued share capital of 391.62 million Shares and an IPO price of 24 sen per Share, OB Holdings will have a market capitalisation of RM93.99 million upon listing.
Following the prospectus launch, applications for the public issue are open from today and will be closed on 15 October 2024 at 5.00pm. OB Holdings is scheduled to be listed on the ACE Market of Bursa Securities on 29 October 2024.
Alliance Islamic Bank is the Principal Adviser, Sponsor, Sole Underwriter and Placement Agent for the IPO exercise.
