Zantat Holdings Bhd (Zantat) opened at 40 sen, up 15 sen or 60% from its initial public offering (IPO) price of 25 sen per share in making a strong debut on the ACE Market of Bursa Malaysia today (Mar 27).
The opening volume of the new counter was at 6.3 million shares.
The calcium carbonate producer is now valued at about 13 times its price-earnings ratio based on a net profit of RM6.77 million and basic earnings per share of three sen for the financial year ended Dec 31, 2023 (FY2023) at 40 sen per share.
The group aims to use the proceed to expand its ground calcium carbonate production line, as well as to upgrade its existing R & D facilities within Zantat Perak Plant 1.
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.
Earlier, it was reported that Zantat’s public portion issue was oversubscribed by 130.15 times.
Zantat’s products are mainly sold to countries in the Asia Pacific Region with India being the largest market followed by Malaysia.
The Company’s largest group of customers are plastic masterbatch manufacturers followed by rubber glove manufacturers, PVC pipe and cable manufacturers, and other manufacturers including paints and coatings, other rubber products, sheet moulding compound, ceramic and pottery, adhesive, plaster and furniture, among others.
M & A Securities Sdn Bhd is the Adviser, Sponsor, Underwriter and Placement Agent for the IPO exercise.
At 9.56am, the share price tapered down to 0.355sen, a rise of 42%, after hitting a high of 0.42sen today.
