Tentative Date(s):

• Opening of application - 27 September 2024
• Closing of application - 15 October 2024
• Balloting of applications - 18 October 2024
• Allotment of IPO shares to successful applicants - 25 October 2024
• Listing on the ACE Market - 29 October 2024

Company Background

The Company was incorporated in Malaysia under the Act as a private limited company on 1 June 2023 under the name of OB Holdings Sdn Bhd. The company was converted to a public limited company on 21 August 2023. 

The Company is principally an investment holding Company. Through its subsidiaries, they are principally involved in the provision of manufacturing services of fortified F&B and dietary supplements to third party brand owners; as well as the manufacturing, sales and marketing of fortified F&B and dietary supplements under its house brands. Further, they are also involved in the provision of contract packing services of milk powder, tea leaves, honey, herb powder, fruit powder and liquid chlorophyll into retail packaging sizes, and trading of milk powder and other activities. 

The company Group’s current corporate structure is illustrated below:

Use of proceeds

1. Business expansion 

1. Repayment of bank borrowings - 51.74% (within 36 months)

2. Purchase of machines - 17.36% (within 36 months)

3. Product development expenditure - 3.12% (within 36 months)

2. Marketing and advertisement - 3.47% (within 24 months)

3. Working capital - 10.42% (within 24 months)

4. Estimated listing expenses - 13.89% (Within 3 months)

Business Expansion

a. Repayment of bank borrowings - 51.74% (within 36 months)

The company intends to allocate RM14.90 million representing 51.74% of the gross proceeds from its Public Issue for the repayment of 2 term loans, i.e. Term Financing 1 and Term Financing 2 which are utilised to part finance the acquisition of New Serendah Land and the construction of New Serendah Factory, for which the details of the Banking Facilities are set out below:

b. Purchase of machines - 17.36% (within 36 months)

The company intends to allocate RM5.00 million representing 17.36% of the gross proceeds from its Public Issue for the purchase of machines upon the completion of its New Serendah Factory, which is expected to take place in the 2nd half of 2025. The estimated cost for the purchase of machines upon the completion of our New Serendah Factory is set out below:

c. Product development expenditure - 3.12% (within 36 months)

The company intends to allocate RM0.90 million representing 3.12% of the gross proceeds from its Public Issue to set up a new laboratory in our New Serendah Factory to expand its product development activities as well as to expand their in-house culturing of probiotics strain. Further details of the product development expenditure are set out below:

Marketing and advertisement - 3.47% (within 24 months)

The company intends to allocate RM1.00 million representing 3.47% of the gross proceeds from its Public issue for its marketing and advertising activities. The estimated costs are set out below:

Working capital - 10.42% (within 24 months)

The company intends to allocate RM3.00 million, representing 10.42% of the gross proceeds from its Public Issue, for the purchase of raw materials and food ingredients. 

Business Model

The summary of the company business model is set out below:

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

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