KUALA LUMPUR: OB Holdings Bhd (OBH) signed an underwriting agreement with Alliance Islamic Bank Bhd (AIS) for its upcoming initial public offering (IPO) on the ACE market of Bursa Malaysia.
OBH managing director Teoh Eng Sia said the signing of this underwriting agreement brings the company one step closer to listing on Bursa Malaysia’s ACE market.
He said this achievement will elevate OBH’s market presence, strengthen its reputation, and unlock new growth opportunities.
“To support our strategic growth initiatives, we have begun the construction of a new factory in Serendah, Selangor, to optimise our operational efficiency further.
“This expansion will also enhance our manufacturing capacity and product development by introducing new machines and laboratory.
“We see growth potential driven by several key trends. The rise of non-communicable diseases and infections are increasing health awareness and demand for fortified food and beverage (F&B) and dietary supplements.
“This trend is further amplified by urbanisation, an ageing population, and the growing influence of social media marketing, which effectively promotes the benefits of these health-related products,“ he said.
OBH offers comprehensive manufacturing services for fortified food and beverages (F&B) and dietary supplements to third-party brand owners.
These services include product development, registration, sourcing, manufacturing, packaging, and delivery across various product forms.
The group also develops, manufactures, and markets its house brands of fortified F&B and dietary supplements, including Bonlife, GoHerb, Zen Night, Sleepin’ Beaute, EZ, Beyoute, Zen Youte, and Zenliv.
Further, the group has expanded its services to include contract packaging for milk powder, tea leaves, honey, herb powder, fruit powder, and liquid chlorophyll.
Additionally, the group trades milk powder and other related activities.
OBH’s IPO involves the issuance of 120 million new ordinary shares, representing 30.6% of its enlarged issued share capital.
Of these, 19.6 million shares will be offered to the Malaysian public via balloting, 7.8 million shares will be allocated to eligible directors, employees, and contributors to OBH and its subsidiaries under the Pink Form Allocation.
Further, 43.6 million shares will be offered to selected investors through private placement, and the remaining 49 million shares will be allocated via private placement to identified Bumiputera investors approved by the Ministry of Investment, Trade and Industry of Malaysia.
Under the underwriting agreement, AIS will underwrite the 19.6 million shares available to the Malaysian public and the 7.8 million shares under the Pink Form Allocation.
OBH is scheduled to be listed by the fourth quarter of 2024, with AIS as the principal adviser, sponsor, sole underwriter and placement agent for the IPO exercise.
