Rhone Ma looks to raise RM31m from IPO

KUALA LUMPUR: Rhone Ma Holdings Bhd, an end-to-end animal health solution provider, en route for a listing on the Main Market of Bursa Malaysia Securities Bhd, is looking to raise RM31.59 million from its initial public offering (IPO) exercise.
The group is to be listed on Dec 19, 2016 with a market capitalisation of RM124.5 million.
Proceeds to be raised from the IPO exercise will be used mainly for its capital expenditure (77.55%), working capital (6.62%) and listing expenses (15.83%).
Its group managing director Dr Lim Ban Keong told reporters at its prospectus launch yesterday, the group’s capital expenditure includes the construction of a new Good Manufacturing Practice (GMP)-compliant plant in Nilai, purchase of machinery and equipment, as well as construction of a new warehouse in Kapar, Klang.
“We plan to spend around RM18 million for the GMP-compliant plant construction and another RM6.5 million for the warehouse,” Lim said, noting the plant will be used to manufacture its pharmaceutical products and feed additives.
Currently, it has a GMP-compliant plant in Petaling Jaya.
While Malaysia remains its biggest market, Lim said the group also has a presence in regional markets such as Brunei, Indonesia, the Philippines, Singapore, Thailand and Vietnam.
“By being a listed company on the main board, we hope it will give us the added-value to penetrate further into our existing foreign markets,” he added, noting as to date, its export market contributes less than 3% of its revenue, while the rest comes from its domestic business.
The IPO exercise entails a public issue of 42.12 million new ordinary shares, of which 8.3 million shares will be made available for the Malaysian public, 16.6 million shares for bumiputra investors approved by the Ministry of International Trade and Industry, and some 9.4 million shares to be placed out to selected investors.
The remaining 7.82 million shares will be for eligible directors, employees and others. Applications for the public issue will close on Dec 6, 2016.
Established in September 2000, Rhone Ma’s end-to-end animal health solution comprises the provision of veterinary advisory and consultation services, diagnostic laboratory analyses and research and development activities.
The group also manufactures and distributes animal products, as well as food ingredients.