Wellspire Holdings entered into an underwriting agreement with TA Securities for the Company’s Initial Public Offering (IPO) on the ACE Market of Bursa Securities.
The IPO entails a public issue of 124,600,000 new ordinary shares and an offer for sale of 124,600,000 existing ordinary shares. Of the 124,600,000 Public Issue Shares, 36,000,000 Public Issue Shares will be made available to the Malaysian Public via balloting, 10,000,000 Public Issue Shares will be allocated to the eligible directors, employees of Wellspire and its subsidiaries and persons who have contributed to the success of the Wellspire Group, while the remaining 78,600,000 Public Issue Shares will be allocated by way of private placement to selected investors.
Pursuant to the underwriting agreement, TA Securities will underwrite a total of 36,000,000 Public Issue Shares.
Wellspire Group is a distributor of consumer-packaged foods in Thailand, focusing on snack foods.
Its main product is sunflower seeds where Wellspire Group is the exclusive distributor of ChaCha brand sunflower seeds and nuts for the Thailand market.
The Wellspire Group also distributes other snack foods such as other seeds and nuts and baked and confectionery products comprising third party brands as well as Wellspire Group’s own brands.
Proceeds from the IPO will be utilised to acquire / construct a warehouse and operational facility in Thailand, fund working capital and defray listing expenses. The acquisition or construction of warehouse and operational facility serves as a long-term investment to increase the Company’s asset base.
The location of the warehouse and operational facility is set to be in the Central region of Thailand or within the Pathum Thani province, which will be strategically located close to Bangkok ports, for receipts of purchases from overseas suppliers.
“The signing of the underwriting agreement marks an important milestone in our journey towards being a listed entity, backed by our business model as a consumer-packaged food distributor in Thailand,” Mo Guopiao, Wellspire’s Chief Executive Officer and Executive Officer said,
TA Securities, besides being the sole underwriter of Wellspire’s IPO, is also appointed as the Principal Adviser, Sponsor and Placement Agent for this exercise.
