Orgabio raises RM30 million in IPO on ACE market to be listed on July 5th

(From left): Ean Yong Hien Chal, Major Shareholder of Orgabio, Ean Yong Hen Loen, Executive Director of Orgabio, Gary Ting, Head of Corporate Finance at M&A Securities, Datuk Ean Yong Tin Sin, Executive Deputy Chairman of Orgabio, Datuk Bill Tan , Managing Director of Corporate Finance at M&A Securities , Ean Yong Hien Voon, CEO/Executive Director of Orgabio, and Ean Yong Han Khian, Major Shareholder of Orgabio

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KUALA LUMPUR (June 15) — Orgabio Holdings Bhd, a market-based instant beverage premix maker, is aiming to raise RM29.97 million from its initial public offering (IPO) for business expansion.

In launching the virtual prospectus, the company said it plans to use most of the proceeds, RM16 million or 53.4%, to build its new factory in Semenyih, Selangor to increase its production capacity to serve for to ensure its future business growth.

Orgabio will also use RM8.14 million (27.2%) of the proceeds for working capital needs, primarily to purchase consumables such as powdered milk, cream, powdered colostrum, powdered coffee, sugar and pouch films used in the manufacture of its products.

An additional RM2.23 million (7.4%) will be allocated for the acquisition of new machinery to support and increase the efficiency of existing manufacturing activities, while the remaining RM3.6 million (12%) will be for estimated listing costs are determined.

The IPO involves the public offering of 96.67 million new ordinary shares of Orgabio, representing 39% of the enlarged share capital of 247.9 million shares, at an issue price of 31 Sens per share.

Orgabio is scheduled to be listed on Bursa Malaysia Securities Bhd’s ACE market on July 5, 2022 and is expected to have a market capitalization of RM76.8 million. The application deadline for Orgabio’s IPO is June 21st.

M&A Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.

Of the new shares, 12.39 million shares (5%) will be made available to the Malaysian public, while 6.2 million shares (2.5%) will be for eligible directors and employees and individuals who have contributed to the Group’s success .

The remaining 78.08 million shares (31.5%) will be privately placed with select Bumiputera investors approved by the Department of International Trade and Industry and select investors.

There’s more to come