Friday 17 Jan 2025
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KUALA LUMPUR (Nov 27): Air fragrance maker Vanzo Holdings Bhd has launched the prospectus for its ACE Market initial public offering (IPO) that may raise up to RM21 million to expand retail presence and marketing activities.

The IPO, priced at 15 sen per share, involves the issuance of 93.35 million new shares and an offer for sale of 46.68 million existing shares, according to the prospectus launched on Wednesday. Altogether, the IPO will offer up to a 30% stake in the company.

The IPO application closes on Dec 4, with Vanzo scheduled to list on Bursa Malaysia's ACE Market on Dec 17.

Vanzo mainly designs and sells car air fragrance and related products ranging from air fresheners to scented candles to supermarkets and convenience stores. The company currently has six retail kiosks with five located in shopping malls in Klang Valley and one in Kuching, Sarawak.

“We believe our listing will provide a larger platform for Vanzo for fundraising and access to capital for our own growth plans,” managing director Allan Wong Liang Tzer said during the prospectus launch.

Gross proceeds from the public issue amounting to RM14 million will go to Vanzo while the RM7 million raised via the offer for sale will go to the selling shareholder Fragrance Century Sdn Bhd, owned by Wong and its executive director Michael Tan Chin Soon.

Vanzo MD Allan Wong: We believe our listing will provide a larger platform for Vanzo for fundraising and access to capital for our own growth plans.

Fragrance Century’s holdings in Vanzo will be reduced to 54% post-listing from 80%.

At the IPO price of 15 sen per share, Vanzo would have a market capitalisation of RM70 million, and this values the company at 13 times its financial year ended Sept 30, 2023 (FY2023) earnings. For FY2023, Vanzo reported a profit after tax of RM5.1 million on revenue of RM40.86 million.

Under the IPO, Vanzo will offer 23.34 million new shares to the public, another 23.34 million shares to eligible persons, and 46.68 million shares to selected investors via private placement.

Vanzo earmarked RM6.6 million for the expansion that will involve four new retail kiosks aimed to increase its brand visibility and customer base. The company will use RM3 million for repayment of bank borrowings and the balance for the working capital and listing-related expenses.  

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

Edited ByJason Ng
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