KUALA LUMPUR: A growing affluent segment in Malaysia is driving demand for wellness and health-focused products, said Alliance Islamic Bank Bhd CEO Rizal IL-Ehzan Fadil Azim.
He noted that in Malaysia and Asia, there has always been greater openness towards both medical and alternative medicine products complementing each other.
“In Malaysia, I think there is greater openness, perhaps even more. I think just generally across the world, when communities become much more affluent, they start thinking much more in terms of wellness and health,” he told SunBiz after the listing of OB Holdings on the ACE Market of Bursa Malaysia.
He said Malaysia has reached the level where there is a generally growing affluent segment that is looking for the products which OB Holdings is offering.
“We also see this trend globally, particularly in European and North American markets. This is why we feel OB Holdings has huge potential to grow because the demand for the product is already there.”
Rizal said the IPO that OB Holdings was undertaking was well-timed.
“Number one, because there is growing demand for what they are offering,” he said.
Additionally, he noted, “We have a very vibrant stock market at this point in time, driven by global economic situations and global interest rates. So, I think it’s just the right time for OB Holdings to go public with their shares.”
Alliance Islamic Bank was the principal adviser, sponsor, sole underwriter, and placement agent for the ACE Market’s fortified food and dietary supplement manufacturing company OB Holdings IPO exercise.
At the time of OB Holdings’ listing, it was the only health and wellness related IPO this year. Other health and wellness companies listed on Bursa Malaysia include Nova Wellness Group Sdn Bhd and DXN Holdings Bhd.
OB Holdings shares gained 4.17% on the company’s market debut on Oct 29, closing at 25 sen compared with its IPO price of 24 sen. By the close of trading last Friday, the company was valued at RM83.64 million on Bursa Malaysia’s ACE Market.
