Listing Detail:
Listing Sought: ACE Market
Issue Price: RM 0.55

Dates:
Offer Period Open: 28 Jun 2018
Offer Period Close: 09 Jul 2018
Listing date: 20 Jul 2018

Number of shares:
Public Issue: 81,660,000
Private Placement: 50,660,000

Stock Code: NOVA

Official Announcement

PUBLIC ISSUE OF 81,660,000 NEW ORDINARY SHARES AT AN ISSUE PRICE OF RM0.55 EACH PAYABLE  IN FULL ON APPLICATION IN CONJUNCTION WITH ITS LISTING ON  THE ACE MARKET OF BURSA MALAYSIA SECURITIES BERHAD ("PUBLIC ISSUE")

Company Overview

Nova Wellness Group Bhd is engaged in providing dietary supplements which include vitamin, mineral, and herbal supplements, functional food products under brand name activmax and sustinex, and skincare products sold under brands novavis and SP8.

Address & Contact:

Lot 708, Nova Avenue, 4th Mile, 43950 Sungai Pelek, Sepang, Selangor, Malaysia.

Tel: +603 3141 3181
Fax: +603 3141 1661
Email: mail@nova.com.my

URL: http://nova.my/

Share Capital
Market Cap: RM174.759 mil
Shares Issue to sell: 81.66 mil shares
Enlarged Issued Shares: 317.743 mil shares

Business
Health care product (mostly distribution on pharmacies)

Revenue on Geo (2017)
M'sia: 96.1%
Others: 3.9%

Fundamental
Market: Ace Market
Price: RM0.55 (eps: RM0.0431)
P/E & ROE: PE12.76, ROE25.64%
Cash & fixed deposit after IPO: RM0.0416 per shares
NA after IPO: RM0.17
Total debt to current asset after IPO: 0.3435 (Debt: 12.703 mil, Non-Current Asset: 36.980 mil, Current asset: 29.187 mil)
Dividend policy: suggest 30% audited profit

Financial
Trade Receivable: 125 days
Trade payable: 24 days

Past Financial Proformance (Revenue, EPS)
FPE2017 (6mth): RM12.486 (eps: 0.05)
2017: RM24.541 mil (eps: 0.1466)
2016: RM24.270 mil (eps: 0.1448)
2015: RM22.847 mil (eps: 0.1313)

Competitor
Ahealth: PE16.51
Biohldg: PE17.05, 39.5% (gross profit margin)
CCMBIO: PE19.36
Herbal Science: 46.6% (gross profit margin)
BioFact: 30.4% (gross profit margin)

Net Profit Margin
2017: 55.9%
2016: 55.8%
2015: 53.7%

After IPO Sharesholding
Dr Abdul Manaf: 0.09%
Phang Nyie Lin: 7.95%
Tan Sok Mooi: 42.50%
Phang Yeen Nung: 7.95%
Phang Yeen Aun: 7.95%

Director Remuneration (from gross profit 2017)
Dr Abdul Manaf: 36k
Phang Nyie Lin: 111k
Phang Yeen Nung: 140k
Phang Yeen Aun: 140k
Dr Munavvar: 36k
Sulaiman: 36k
Sim Seng Loong: 36k
Tan Mio Har: 36k
Total director remuneration from gross profit: 3.25%

Use of fund
New GMP-Compliant Production Facility: 36.7%
R&D: 25.8%
Expand retail market: 11.2%
Working capital: 20.5%
Lisitng Expenses: 5.8%