KUALA LUMPUR: OB Holdings Berhad (“OB Holdings”), a provider of fortified food and beverage (F&B) and dietary supplements manufacturing services, has successfully debuted on the ACE Market of Bursa Malaysia Securities Berhad.
The stock, categorized under the consumer products and services sector, began trading today with the short name OBHB and stock code 0327. At the opening bell, OB Holdings’ share price opened at 25 sen, above the issue price of 24 sen, with an opening volume of 6.39 million shares. This debut followed an impressive initial public offering (IPO) oversubscription of 109.47 times, reflecting strong investor confidence in OB Holdings’ business strategies and growth potential.
Mr. Teoh Eng Sia, Managing Director of OB Holdings, stated, “Today marks a significant milestone for OB Holdings as we join the ACE Market. This achievement is a testament to our team’s dedication and commitment over the past 29 years in the fortified F&B and dietary supplements industry. With fresh capital in hand, we are poised to embark on a new era of growth and innovation.”
“In a world where health and wellness are top priorities, OB Holdings provides consumers with products that are both nutritious and enjoyable. Our commitment to using scientifically proven formulations aligns with our mission to promote well-being. We are grateful for the support we have received and look forward to leveraging this opportunity to create sustainable value for our shareholders while continuing to innovate and improve our product offerings.”
To recap, 72.22% of the RM28.80 million raised will be allocated to fuel OB Holdings’ business expansion initiatives. These funds will be used to repay bank borrowings associated with the construction of the new Serendah Factory. OB Holdings will also invest in new machinery and establish a state-of-the-art laboratory within the factory. Additionally, a portion of the funds will support a clinical trial for Bonlife SachaQ10 Plus Softgel. These strategic investments aim to enhance production capabilities, drive product innovation, and instill greater consumer confidence in OB Holdings’ offerings.
On the financial front, OB Holdings generated RM12.02 million in revenue and RM1.44 million in profit after tax (PAT) in the first quarter of the fiscal year ending 31 May 2025 (1QFY25). After adjusting for listing expenses of RM0.10 million, the Group recorded an adjusted PAT of RM1.54 million. In terms of revenue breakdown by segment, manufacturing services remained the key contributor, accounting for 52.6% of total revenue, followed by house brand product sales at 34.8%. Trading of milk powder and other activities contributed 12.6% during the period under review.
Alliance Islamic Bank serves as the Principal Adviser, Sponsor, Sole Underwriter, and Placement Agent for the IPO exercise.
