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Orgabio bounds for ACE listing, counts Hai-O as cornerstone investor
Sep 30, 2021
Source: New Straits Times
 
 
Orgabio said proceeds from the IPO would mainly be used to fund and repay bank borrowings secured for the construction of its new factory in Semenyih, Selangor.
 

KUALA LUMPUR: Orgabio Holdings Bhd has signed an underwriting agreement with M&A Securities Sdn Bhd in conjunction with its initial public offering (IPO) on Bursa Malaysia's ACE Market.

The IPO involves the issuance of 96.7 million new shares representing 39 per cent of Orgabio's enlarged share capital.

In a statement today, the instant beverage premix manufacturer said under the agreement, M&A Securities would underwrite a total of 18.6 million new shares.

The remaining 78.1 million new shares will be placed out to selected Bumiputera investors and selected investors by way of private placement.

Orgabio said the IPO had attracted and secured Main Market-listed traditional healthcare group Hai-O Enterprise Bhd as its cornerstone investor.

Orgabio executive deputy chairman Datuk Ean Yong Tin Sin said having developed relationship over a number of years, the company viewed Hai-O as a long-term partner.

"Their commitment is a strong vote of confidence to our company, business model, strategy and team," he said.

Orgabio said proceeds from the IPO would mainly be used to fund and repay bank borrowings secured for the construction of its new factory in Semenyih, Selangor.

"By constructing a new factory, we will be able to customise the design for our manufacturing area which, in turn, will allow us to optimise the configuration of our existing machinery and new machinery to be purchased in order to enhance our manufacturing workflow and efficiency.

"This will allow our manufacturing workflow to be more linear and continuous as compared to our current manufacturing workflow," Ean said.

Part of the proceeds will also be used to purchase new machinery, working capital requirements and to be used to defray the estimated listing expenses.

Orgabio is scheduled to be listed by December.