KUALA LUMPUR (Oct 29): Fortified food and supplement maker OB Holdings Bhd (KL:OBHB) expects annual production capacity to more than double with the completion of a new factory in Serendah, Selangor.
OB Holdings executive director Boey Lee Bao Yu said the expansion of the factory, for which the company allocated a bulk from its IPO proceeds, is anticipated to be completed in the first half of 2025 (1H2025) and commence commercial production in the first half of 2026 (1H2026).
“Our plan is to construct a new factory in Serendah, with a land area of 210,420 sq ft. We commenced construction in January 2024 and it is expected to the completed by 1H2025, with commercial production to follow suit in 1H2026,” she said during a press conference after the company listed on the ACE Market of Bursa Malaysia on Tuesday.
OB Holdings general manager Rachel Lew Yoke Chin explained that the new factory is expected to see the group expand its annual production capacity by 2.5 times.
According to the company’s IPO prospectus, the group’s estimated annual capacity stood at nine million liquid/jelly sachet (48.17% utilisation rate), 36 million powder sachets (73.79% utilisation rate), 40.8 million vegetable softgel capsules (31.16%), and 1.33 million cans of powder (7.37%) for the financial year ended May 31, 2024 (FY2024).
In FY2024, OB Holding’s profit after tax fell to RM5.5 million, compared with RM9.6 million in FY2023, RM 8.2 million in FY2022, and RM4.7 million in FY2021.
Revenue totalled RM50.9 million in FY2024, up from RM46.5 million in FY2023, RM43.6 million in FY2022, and RM29.7 million in FY2021.
Shares of OB Holdings Bhd settled 4.17% higher on their ACE Market trading debut on Tuesday, at 25 sen, versus its initial public offering (IPO) price of 24 sen apiece, on a volume of 6.38 million shares.
At its last close, the company was valued at RM97.9 million.
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