KUALA LUMPUR (July 10): Vanzo Holdings Bhd, an air fragrance maker, filed for an initial public offering (IPO) on ACE Market to raise funds for retail network expansion and marketing activities.

The proposed IPO involves a public issue of 93.35 million new shares and an offer for sale of 46.68 million existing shares at a price to be determined later, Vanzo said in its draft prospectus posted to Bursa Malaysia. All in all, the listing is offering investors up to 30% stake in the company.

“We intend to strengthen our market presence by expanding our network of retail kiosks throughout Malaysia,” Vanzo said. The company said it plans to set up five new retail kiosks and also spend part of the proceeds for promotion activities, including advertising and sponsorships.

Vanzo designs, markets and sells 11 car and indoor fragrance products, ranging from air fresheners to scented candles, to retailers such as hypermarkets and convenience stores. The company also has five retail kiosks in five shopping malls in the Klang Valley.

In the financial year ended Sept 30, 2023, Vanzo made a net profit of RM5.1 million on the back of RM40.86 million in revenue.

Under the public issue, Vanzo will allocate 23.34 million new shares to the Malaysian public and another 23.34 million shares to eligible persons. The company will also set aside 45.68 million shares to select investors through private placement.

Proceeds from the sale of new shares will also go towards partial repayment of bank borrowings and working capital to buy additional inventories for the planned expansion. The rest will be used to defray listing expenses.

The offer for sale, meanwhile, will be done through private placement to select investors, and proceeds from the offering will accrue entirely to the selling shareholder Fragrance Century Sdn Bhd, owned by managing director Allan Wong Liang Tzer and executive director Michael Tan Chin Soon.

M&A Securities is the IPO’s principal adviser, sponsor, underwriter and placement agent while Eco Asia Capital Advisory is the financial adviser.