Zantat Holdings Berhad aims to raise RM14 million under its listing exercise on the ACE Market of Bursa Malaysia Securities Berhad.
The Company plans to use RM3.8 million (27.4%) raised from the initial public offering to upgrade its research and development (R&D) centre and purchase additional test and product development equipment.
Mr Ivan Chan, Managing Director of Zantat, said the upgrading of R&D facilities within Zantat Perak Plant 1 is crucial to facilitate the Company’s product expansion plan.
“As part of our strategy to expand our product range, we intend to develop three new bioplastic compounds and enhance our ultrafine grade ground calcium carbonate namely “Zanelite” series and produce more varieties to generate new revenue stream,” he added.
A further RM1.4 million (9.6%) of the proceeds will be used to purchase high efficiency machine components such as fully integrated automatic robotic arm palletising system and high-efficiency motors to automate its packing system and move towards industrial automation.
The remainder of the proceeds will be used to upgrade Calrock Perak Plant’s infrastructure amounting to RM1.0 million (7.2%); working capital RM1.4 million (10.2%), repay bank borrowings RM3.4 million (24.2%) and to defray the estimated listing expenses of RM3.0 million (21.4%).
Under the listing exercise, Zantat is issuing 56.0 million new shares (“issue shares”), representing 20.0% of the enlarged share capital at an issue price of RM0.25 per share.
Of the 56.0 million issue shares, 14.0 million issue shares will be made available to the Malaysian public via balloting; 11.2 million issue shares for its eligible Directors, employees and persons who have contributed to the success of Zantat Group under Pink Form Allocations while the remaining 30.8 million issue shares are reserved for Private Placement to selected investors.
As part of its listing exercise, the existing shareholders of the Company will also make an Offer for Sale of 16.8 million existing shares to selected investors by way of Private Placement.
Based on the enlarged share capital of 280.0 million shares, Zantat is expected to have a market capitalisation of RM70.0 million after listing.
For the nine-month financial period ended 30 September 2023 (“9MFPE2023”), Zantat registered RM5.7 million net profit on the back of RM91.1 million turnover. The net profit achieved in the period under review has outperformed its FYE2022’s results. Net margin for 9MFPE2023 has also improved to 6.2% from 4.8% in FYE2022.
For FYE2022, the Company posted RM5.4 million net profit and a turnover of RM113.0 million. Zantat’s listing on the ACE Market of Bursa Securities is tentatively scheduled on 27 March 2024.
M & A Securities Sdn Bhd is the Adviser, Sponsor, Underwriter and Placement Agent for the IPO exercise.
