KUALA LUMPUR: Shares in OB Holdings Bhd climbed 4.17% as it opened for trading on the ACE Market of Bursa Malaysia, following an initial public offering (IPO) that raised RM28.8mil.
The food and beverage (F&B) and dietary supplements manufacturing services provider was traded at 25 sen, up one sen, or 4.17% from its IPO price of 24 sen. It is currently the most active counter on Bursa Malaysia with 45.6 million shares traded.
OB Holdings provides fully customisable, end-to-end manufacturing services for fortified food and beverages (F&B) and dietary supplements to third-party brand owners.
Managing director Teoh Eng Sia said with fresh capital in hand, the group is poised to embark on a new era of growth and innovation.
“In a world where health and wellness are top priorities, OB Holdings provides consumers with products that are both nutritious and enjoyable. Our commitment to using scientifically proven formulations aligns with our mission to promote well-being.
“We are thankful for the support we have received and look forward to leveraging on this opportunity to create sustainable value for our shareholders while continuing to innovate and improve our product offerings,” he said.
OB Holdings has earmarked 72.22% of the RM28.8mil raised for business expansion initiatives. These funds will be used to repay bank borrowings related to the construction of its new Serendah factory.
It will also invest in new machinery and establish a state-of-the-art laboratory within the factory. Additionally, part of the funds will be allocated for a clinical trial of Bonlife SachaQ10 Plus Softgel.
Alliance Islamic Bank is the principal adviser, sponsor, sole underwriter and placement agent for the IPO exercise.
