KUALA LUMPUR (Dec 17): Vanzo Holdings Bhd (KL:VANZO) ended its ACE Market debut on Tuesday with a 10% rise from its initial public offering (IPO) price of 15 sen, raising close to RM21 million.
Shares of the air fragrance maker opened at 17.5 sen, a 2.5 sen or 16.7% premium to its IPO price of 15 sen per share. The stock then surged to as high as 19 sen, but traded mostly at 18 sen.
In the final hours of trading, the stock fell below the 17 sen mark and settled at 16.5 sen at market close.
Investors snapped up shares of Vanzo, with the IPO comprising a public offering of 23.34 million new shares — which have been oversubscribed by more than 66.7 times, while the private placement of 46.68 million new shares to selected investors was also fully taken up.
The IPO also involves an offer for sale of 46.68 million existing shares by selling shareholder Fragrance Century Sdn Bhd, owned by Vanzo’s managing director Allan Wong Liang Tzer and its executive director Michael Tan Chin Soon.
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 Fragrance Century, whose holdings in Vanzo will be reduced to 54% post-listing from 80%.
Vanzo has earmarked RM6.6 million for an expansion that will involve four new retail kiosks aimed at increasing its brand visibility and customer base. The company will use RM3 million for repayment of bank borrowings and the balance for working capital and listing-related expenses.
The company said it will open two new kiosks by the first half of 2025, and the remaining two by the first half of 2026.
It also aims to introduce a series of up to five products annually and is eyeing more collaborations with renowned brands to strengthen its market presence. Previously, the company has also collaborated with The Walt Disney Company (Malaysia) Sdn Bhd and Warner Bros Consumer Products Inc to enhance its brand appeal and market reach.
Vanzo mainly designs and sells car air fragrance and related products ranging from air fresheners to scented candles to supermarkets and convenience stores. It also markets complementary fragrance-related products, such as candle tool sets, rechargeable electric lighters, and anti-slip car mats.
The company currently has six retail kiosks, with five located in shopping malls in Klang Valley and one in Kuching, Sarawak.
For the financial year ended Sept 30, 2023 (FY2023), Vanzo posted a profit after tax of RM5.1 million, a 19% increase from RM4.28 million in FY2022, as revenue grew at a similar pace to RM40.86 million from RM33.97 million.
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.
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