Company Background

The Company was incorporated under the name of Wellspire Holdings Sdn Bhd in Malaysia on 6 August 2021 under the Act as a private limited company. Subsequently on 25 March 2022, the Company was converted to a public limited company to embark on the Listing on the ACE Market. Wellspire’s principal activity is investment holding. The subsidiaries’ principal business activities include:

• distribution of consumer packaged foods; and
• online retailer of consumer packaged foods

The Group structure is as set out below:

Use of proceeds

1. Acquire/ construct a warehouse and operational facility in Thailand - 55.83% (within 18 months)
2. Working capital - 20.79% (within 6 months)
3. Estimated listing expenses - 23.38% (within 3 months)

Acquire/ construct a warehouse and operational facility in Thailand - 55.83% (within 18 months)

The Group intends to allocate RM16.00 million, representing approximately 55.83% of the gross proceeds from the Public Issue for the acquisition/ construction of a warehouse and operational facility in Thailand.

Operational facility refers to an area for offices of various departments such as sales and marketing, procurement, warehouse and accounts departments to carry out the Group’s operations, as well as the chiller room

Currently, the company operates from the distribution centre located in the Pathum Thani province, Thailand with a total built-up area of approximately 4,897 sq. m. on a total land area of approximately 9,636 sq. m. The Group’s current distribution centre on the said land houses the following:

Working capital - 20.79% (within 6 months)

The requirement for working capital will increase in tandem with its future plans. Therefore, the company expects to utilize approximately RM5.96 million of the proceeds raised as additional working capital to finance its day-to-day operations, including inter alia, purchase of inventories and defrayment of operational expenses, as detailed below:

Business model

The business model is depicted in the following diagram:

The company is involved in the distribution of consumer packaged foods focusing on snack foods. The main product is sunflower seeds and they have been the exclusive distributor of ChaCha brand sunflower seeds and nuts for the Thailand market since January 2013. QiaQia is a China-based company that produces roasted seeds and nuts, and baked snack foods under the brand “ChaCha” and “ChaCheer” with sales in China and export countries including Thailand, Malaysia, Indonesia, Vietnam, the United States and Canada, among others. At present, QiaQia has 10 production facilities where 9 are located in China, and 1 located in Thailand (Source: ChaCha Annual Report 2021). The company sourced the ChaCha sunflower seeds and nuts mainly from Thailand as well as China.

Click here to continue the IPO -Wellspire Holdings Berhad (Part 2)

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