Orgabio inks IPO underwriting agreement with M&A Securities for ACE Market listing
30 Sep 2021, 02:15 pm
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(From left) Orgabio Holdings Bhd executive director Ean Yong Hen Loen, chief executive officer (CEO) and executive director Ean Yong Hien Voon, executive deputy chairman Datuk Ean Yong Tin Sin, M&A Securities Sdn Bhd managing director of corporate finance Datuk Bill Tan, director Datuk Wong Gian Kui and head of corporate finance Gary Ting at the ceremony on Thursday.

KUALA LUMPUR (Sept 30): Instant beverage premix manufacturer Orgabio Holdings Bhd has inked an underwriting agreement with M&A Securities Sdn Bhd in conjunction with its initial public offering (IPO) exercise on the ACE Market of Bursa Malaysia.

Orgabio said in a statement on Thursday that the IPO involves the issuance of 96.7 million new shares in the group, representing 39% of its enlarged share capital.

It added that M&A Securities, which is the adviser, sponsor, underwriter and placement agent for the IPO exercise, will underwrite a total of 18.6 million new shares.

Orgabio said the 18.6 million new shares will be made available for the Malaysian public and its eligible directors and employees as well as persons who had contributed to the success of the group.

The remaining 78.1 million new shares involved in the IPO will be placed out to selected bumiputera investors approved by the Ministry of International Trade and Industry (MITI) and selected investors by way of private placement.

Orgabio executive deputy chairman Datuk Ean Yong Tin Sin said proceeds from the IPO will mainly be used to fund and repay bank borrowings secured for the construction of its new factory in Semenyih, Selangor.

“By constructing a new factory, we will be able to customise the design for our manufacturing area which, in turn, will allow us to optimise the configuration of our existing machinery and new machinery to be purchased in order to enhance our manufacturing workflow and efficiency.

“This would allow our manufacturing workflow to be more linear and continuous as compared to our current manufacturing workflow,” he said.

He added that the proceeds will also be used to purchase new machinery to support and enhance the efficiency of its existing manufacturing activities, working capital requirements mainly to purchase supplies used for the manufacturing of its products, as well as defraying the estimated listing expenses.

Orgabio also noted that its IPO had attracted and secured Main Market-listed traditional healthcare group Hai-O Enterprise Bhd as its cornerstone investor.

Orgabio is tentatively scheduled to be listed on the ACE Market by December 2021.

Edited BySurin Murugiah
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