OB Holdings Berhad has launched its prospectus today in conjunction with its upcoming initial public offering and listing on the ACE Market of Bursa Malaysia Securities Berhad.

The company provides fully customisable, end-to-end manufacturing services of fortified F&B and dietary supplements to third party brand owners. Supported by in-house capabilities in development of product formulations, the Group manufactures products in a variety of forms comprising vegetable softgel capsules, hard capsules, tablets (including effervescent tablets), teabags, liquid beverages, powder mixes and jelly.

It aims to raise RM28.8 million through the IPO with a majority allocated to fund the Group's expansion plans. Specifically, RM14.90 million (51.74%) will be used to repay bank borrowings incurred from the construction of the new Serendah Factory. RM5.00 million (17.36%) is earmarked for the purchase of new machines, while RM0.90 million (3.12%) will be used to set up a new laboratory in the new Serendah Factory and undertake the clinical trial for the Bonlife SachaQ10 Plus Softgel.

The remaining funds it said will be utilised for general operational purposes, including RM1.00 million (3.47%) for marketing and advertisement activities, RM3.00 million (10.42%) for working capital, and RM4.00 (13.89%) million to cover IPO-related expenses.

With an enlarged issued share capital of 391.62 million Shares and an IPO price of 24 sen per Share, OB Holdings will have a market capitalisation of RM93.99 million upon listing.

Following the prospectus launch, applications for the public issue are open from today and will be closed on 15 October 2024 at 5.00pm. OB Holdings is scheduled to be listed on the ACE Market of Bursa Securities on 29 October 2024.

Alliance Islamic Bank is the Principal Adviser, Sponsor, Sole Underwriter and Placement Agent for the IPO exercis