KUALA LUMPUR: OB Holdings Bhd, a food and beverages (F&B) and dietary supplements
manufacturing services provider, is constructing a new factory in Serendah worth RM30.5
million, with land costing RM13.5 million and construction RM17 million.
OB Holdings general manager Rachel Lew said that the funds are from bank borrowing and
internally generated funds.
“We have to increase our manufacturing efficiency and capacity. Our new Serendah
factory will focus on manufacturing fortified food and beverage products,” Lew said in a press
conference at OB Holdings prospectus launch on Friday.
To expand the company’s manufacturing capacity, Lew said they plan to purchase new
machinery for their new Serendah factory and Selayang factory such as multilane sachet
packing machine, freeze dried machine, extraction and concentration machine, stability
chamber, supercritical carbon dioxide extraction machine and gelatin melting tank
machine.
“And the total cost is RM7.7 million and internally generated fund RM2.7 million and via
IPO process is RM5 million,” Lew disclosed.
To enhance product development activities, she said they will set up a new laboratory in their
new Serendah factory and they plan to purchase new machinery such as autoclave, biohazard
cabinet, high performance liquid chromatography, spray dryer, stability chamber,
extraction machine and other measurement instruments.
“The total cost is RM400,000,” she disclosed.
Lew said the total land area of the new factory is 255,000 sqft, which is 5.8 acres and the
Phase 1 development consists of the land area 210,000 sqft.
“The build-out area, the factory is 104,000 sqft and the office is 24,000 sqft including a new
laboratory for product development activities,” she said.
Lew said the Phase 1 construction began in January 2024 with expected completion in first
half of 2025 and targeted to go operational of commercial production by first half of 2026 after
it obtains the necessary licenses and certification.
OB Holdings launched its prospectus in conjunction with its upcoming initial public
offering (IPO) and listing on the ACE Market of Bursa Malaysia Securities Bhd.
OB Holdings and its subsidiaries provides 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.
In addition, the group manufactures, sells, and markets products under its own house
brands Bonlife, GoHerb, Zen Night, Sleepin’ Beaute, EZ:Nitez, Beyoute, Zen Youte, and
Zenliv.
From the RM28.8 million to be raised through the IPO, a majority will be 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.
Five 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 will be utilised for general operational purposes, including RM1
million (3.47%) for marketing and advertisement activities, RM3 million (10.42%)
for working capital, and RM4 million (13.89%) 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.
OB Holdings is scheduled to be listed on the ACE Market of Bursa Securities on Oct 29, 2024.
Alliance Islamic Bank is the principal adviser, sponsor, sole underwriter and placement agent
for the IPO exercise.
