KUALA LUMPUR (April 18): Food and supplement company OB Holdings Bhd said on Thursday that it has secured approval from Bursa Malaysia for an initial public offering (IPO) on the bourse’s ACE Market, to raise funds for expansion.

OB Holdings is targeting listing in the fourth quarter of 2024, the company said in a statement. The approval from Bursa Malaysia marks another step forward for the IPO since the company filed a draft prospectus on Oct 16, 2023.

“This IPO approval marks an important milestone in our history, and allows us to embark on our next phase of growth,” said managing director Teoh Eng Sia.

The company mainly manufactures the so-called fortified food and dietary supplements under various house brands, as well as for third-party brand owners.

OB Holdings also offers contract packing services for various products such as milk powder, tea leaves, honey, herb powder, fruit powder, and liquid chlorophyll into retail packaging sizes, along with the trading of milk powder and other activities.

The IPO involves a public issue of 120.00 million new ordinary shares, offering investors a 30.64% stake in the company, according to its draft prospectus. There is no sale of existing shares.

Teoh and his wife Wong Chung Theng each currently own 50% in the company that made RM9.57 million in profit after tax, on the back of a RM46.45 million revenue in the year ended May 31, 2023.

Proceeds from the IPO have been earmarked for repayment of bank borrowings, purchase of machines, product development, marketing and advertising, and for working capital requirements, as well as to defray listing expenses.

Alliance Islamic Bank Bhd is the principal adviser, sponsor, sole underwriter and placement agent for the IPO exercise.