Fong (fourth left) and other board members of Rhone Ma and Public Investment Bank Bhd during their prospectus launch yesterday.
KUALA LUMPUR: Rhone Ma Holdings Bhd (Rhone MA) yesterday launched its Prospectus pursuant to its Initial Public Offering (“IPO”) exercise in conjunction with its listing on the Main Market of Bursa Malaysia Securities Bhd.
The IPO exercise entails a public issue of 42.122 million new ordinary shares, where there will be 8.3 million shares available for application by the Malaysian public, 7.822 million shares available for application by the eligible directors and employees of the Company and its subsidiaries and other persons who have contributed to the success of the Group.
Meanwhile, 16.6 million shares will be made available for application by way of private placement to Bumiputera investors approved by the Ministry of International Trade and Industry, Malaysia and the remaining 9.4 million shares will be made available by way of private placement to selected investors.
The prospectus was launched by the group managing director of Rhone Ma, Dr Lim Ban Keong, together with the Group’s Board of Directors.
Also present were Fong Loong Seng, chief executive officer of Public Investment Bank Bhd and Lee Yo-Hunn, deputy chief executive officer and head of Corporate Finance and Advisory of Public Investment Bank Bhd.
Public Investment Bankis the principal adviser, sole underwriter and sole placement agent for Rhone Ma’s IPO exercise.
Based on the issue price of RM0.75 per share and the enlarged issued and paid-up share capital of Rhone Ma of 166,000,000 ordinary shares, the Company will have a market capitalisation of RM124.5 million.
Through the IPO exercise, Rhone Ma intends to raise approximately RM31.59 million and will be used for capital expenditure (77.55 per cent), working capital (6.62 per cent) and defrayment of listing expenses.
The proceeds raised from this IPO exercise will be predominantly utilised for capital expenditure which includes the construction of a new GMP-compliant plant in Nilai, Negeri Sembilan and purchase of machineries and equipment as well as construction of a new warehouse in Kapar, Klang.
Datuk Hamzah Mohd Salleh, independent non-executive chairman of Rhone Ma lead the opening speech at the launch of the Prospectus.
“It is vital to have continuous product development and enhancement in the animal health and nutrition market to ensure that we continue to meet the requirements of our customers. This is one of the reasons why Rhone Ma has set up its own in-house manufacturing and R&D centre to support our business.”
Application for the public issue opened yesterday and will close on December 6, 2016 while the Group is slated to list on the Main Market of Bursa Malaysia Securities Bhd on December 19, 2016.