KUALA LUMPUR (Sept 10): Having raised RM18.2 million from its initial public offering (IPO) in March, Zantat Holdings Bhd (KL:ZANTAT) is now seeking to raise another estimated RM14 million via a special issue of shares to Bumiputera investors.
The calcium carbonate producer said the special issue of up to 40 million new shares or 12.5% of its enlarged share base will be offered to independent third-party Bumiputera investors to be identified by the Ministry of Investment, Trade and Industry.
The actual proceeds to be raised from the special issue is dependent on the issue price and the actual number of shares issued. For illustrative purposes, assuming the special issue shares are priced at 35 sen each, it is expected to raise gross proceeds of up to RM14 million.
Of the proceeds, RM11.6 million will be used to fund its working capital, RM2 million will be for repayment of bank borrowings, and the remaining RM400,000 to defray placement expenses.
Zantat has outstanding borrowings, inclusive of trade facilities, of RM8.1 million as at Sept 6, 2024.
M&A Securities has been appointed as the principal adviser and placement agent for the special issue, which is expected to be completed by the fourth quarter of 2024.
Zantat produces ground calcium carbonate and calcium carbonate dispersions that are mainly used in the manufacturing of plastic masterbatch, rubber gloves, PVC pipes and cables, and in other products such as paints and coatings.
Zantat raised RM14 million from its IPO exercise, with the money earmarked for the upgrading of its research-and-development facilities and its Calrock Perak plant’s infrastructure. The proceeds would also be used for investment in machine components and industrial automation, and to repay bank borrowings and fund working capital.
Zantat shares closed unchanged at 34 sen, up 36% compared to its IPO price of 25 sen, giving the group a market capitalisation of RM95 million.