KUALA LUMPUR (March 18): The ACE Market debut of Zantat Holdings Bhd, a high-grade calcium carbonate powder producer, has attracted RM459.01 million worth of orders for shares of its initial public offering (IPO) from the Malaysian public, about 33 times the RM14 million that it aims to raise from its IPO.
The public portion of its IPO was oversubscribed by 130.15 times, it said in a statement after receiving 13,755 applications seeking 1.84 billion new shares from the Malaysian public for the 14 million new shares it made available for their subscription at 25 sen per share.
The Bumiputera public portion of shares was oversubscribed by 137.99 times, with 8,151 applications for 972.94 million new shares received. For the non-Bumiputera public portion, 5,604 applications for 863.11 million new shares were received, representing an oversubscription rate of 122.30 times.
The 11.2 million new shares it made eligible for directors, employees and persons who had contributed to the success of the group were also fully subscribed, while 47.6 million shares made available for application by private placement to selected investors had been fully placed out.
Under the listing exercise, Zantat is issuing 56 million new shares, representing 20% of its enlarged share capital at an issue price of 25 sen per share.
As part of the listing, existing shareholders also made an offer for the sale of 16.8 million existing shares to selected investors by way of private placement.
Zantat managing director Ivan Chan said with the IPO funds in place, it can now expand and capitalise on the growth opportunities in the calcium carbonate and biodegradable products industries.
The calcium carbonate powder Zantat produces is mainly used for the production of plastic components. Its biggest clients are manufacturers of plastic masterbatch, which is a solid or liquid additive for plastic used for colouring plastics.
“Moving forward, we will utilise our proceeds to expand our ground calcium carbonate production line, as well as to upgrade our existing research and development facilities within Zantat Perak Plant 1.
"With the upgraded R&D centre and enhanced testing capabilities, we will be focusing on our in-house product development and enhancement of our products for new and existing customers pertaining to calcium carbonate products, and also our new downstream business venture, bioplastic compounding," Chan said.
Zantat is scheduled to list on the ACE Market of Bursa Malaysia Securities Bhd on March 27.
Based on its enlarged share capital of 280 million shares, Zantat is expected to have a market capitalisation of RM70 million after listing.