Background

Vanzo Holdings Berhad (Vanzo) is a homegrown company primarily engaged in the design, marketing, and sales of air fragrances and fragrance-related products under its own brands, “Vanzo” and “Vanscent”, as well as the third-party brand “CopperX”.

IPO Statistic

This IPO entails a public issue of 93.3mn new shares and an offer for sale of 46.7mn existing shares. Of the 93.3mn public issue shares, 23.3mn will be offered to the Malaysian public, 23.3mn to eligible individuals, and 46.7mn to selected investors. Collectively, these share offerings represent 30.0% of the group’s enlarged issued share capital.

Competitive Advantages

1. Established Homegrown “Vanzo” Brand
2. Extensive Sales Network
3. Health-Conscious Plant Based Ingredients Products
4. Spearheaded By Experienced Key Management Team

Valuation

Vanzo is valued at an IPO price of RM0.15/share, with a PER of 14.3x based on FY24E EPS. Notably, Vanzo’s peers in Malaysia are privately owned. Hence, we apply a 50% discount compared to the average PER of 25.3x among its regional peers due to its significantly smaller market capitalisation. This results in a fair value of RM0.19/share, based on a PER of 12.6x applied to its CY25 EPS.

Source: TA Research - 3 Dec 2024