KUALA LUMPUR (Feb 19): Zantat Holdings Bhd has inked an underwriting agreement with M&A Securities Sdn Bhd for its listing on the ACE Market of Bursa Malaysia Securities Bhd.

In a statement on Monday, the calcium carbonate producer said the initial public offering (IPO) involves a public issue of 56.0 million new shares, representing 20% of the enlarged share capital of Zantat and an offer for sale of 16.8 million existing shares by way of private placement to selected investors.

It said of the 56.0 million issue shares, 14.0 million issue shares will be made available to the Malaysian public via balloting, 11.2 million issue shares for its eligible directors, employees and persons who have contributed to the success of the Zantat group under pink form allocations while the remaining 30.8 million issue shares are reserved for private placement to selected investors.

M&A Securities will underwrite a total of 25.2 million issue shares made available to the Malaysian public and pink form allocations.

Zantat is one of the biggest producers of high-grade calcium carbonate products in the region  with 39 years of operating history in Malaysia.

Through its subsidiaries, Zantat is principally involved in the production of calcium carbonate products, namely ground calcium carbonate and calcium carbonate dispersions.

The company is also involved in the production of kaolin dispersion, processing of ultrafine processed calcium carbonate, trading of other industrial minerals and sales of limestone quarry products. Its bioplastic compounding business is in the process of commercialisation.

Zantat’s products are mainly sold to countries in the Asia Pacific region with India being the largest market followed by Malaysia.

The company said it largest group of customers are plastic masterbatch manufacturers followed by rubber glove manufacturers, PVC pipe and cable manufacturers, and other manufacturers including paints and coatings, other rubber products, sheet moulding compound, ceramic and pottery, adhesive, plaster and furniture, among others.

Zantat managing director Ivan Chan said the IPO exercise is timely for the company as it will enable Zantat to gain access to the Malaysian capital markets to raise funds for the execution of its expansion plans and to support its continued growth.

"The IPO will see us realise plans to expand the applications of our ground calcium carbonate products to the high value-added hygiene and plastic packaging industries.

“Our group has a diversified range of calcium carbonate product range, and is well positioned to capitalise on this global movement, as we have commercialised several types of ground calcium carbonate products that are suitable for use as fillers used to reduce the composition of plastic, making it more environmentally friendly,” said Chan.

Meanwhile, M&A Equity Holdings Bhd managing director Datuk Bill Tan said calcium carbonate is commonly used as a filler material in manufacturing plastic and rubber products industries that are seeing rapid and steady growth in Malaysia and India, the two markets Zantat is strong in.

“Zantat is definitely at a very advantageous position in fulfilling the needs from such a wide range of industries going forward along with the fact that the company is geographically in the markets where these segments are thriving. There is so much potential for this industry and thus so much potential for Zantat,” added Tan.

M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO exercise.