Zantat signs underwriting agreement with M&A Securities for IPO
KuaLa LuMPuR: Calcium carbonate producer Zantat Holdings Berhad (Zantat) signed an Underwriting Agreement with M&A Securities Sdn Bhd (M&A Securities) for its listing on the ACE Market of Bursa Malaysia.
The initial public offering (IPO) involves a public issue of 56 million new shares, representing 20 per cent of the enlarged share capital of Zantat and an offer for Sale of 16.8 million existing shares by way of private placement to selected investors.
Of the 56 million issue shares, 14 million issue shares will be made available to the Malaysian public via balloting; 11.2 million issue shares for its eligible directors, employees and persons who have contributed to the success of Zantat Group under pink form allocations while the remaining 30.8 million issue shares are reserved for Private Placement to selected investors.
Pursuant to the Underwriting Agreement, M&A Securities will underwrite a total of 25.2 million issue shares made available to the Malaysian public and Pink Form Allocations.
Ivan Chan, managing director of Zantat, said the IPO exercise is timely for the Company as it will enable Zantat to gain access to the Malaysia capital markets to raise funds for the execution of its expansion plans and to support its continued growth.
“The IPO will see us realise plans to expand the applications of our ground calcium carbonate products to the high value-added hygiene and plastic packaging industries.
“We have observed that manufacturers worldwide, especially those in plastic manufacturing, are gradually moving towards a more environmentally responsible approach to production due to increasing pressures of sustainability requirements, and thus these manufacturers have been adopting calcium carbonate fillers in their formulations to partly replace plastic and also to reduce greenhouse gas emissions.
“Our group has a diversified range of calcium carbonate product range, and is well positioned to capitalise on this global movement, as we have commercialised several types of ground calcium carbonate products that are suitable for use as fillers used to reduce the composition of plastic, making it more environmentally friendly,” he added.
Zantat is one of the biggest producers of high-grade calcium carbonate products in the region with 39 years of operating history in Malaysia.
Through its subsidiaries, Zantat is principally involved in the production of calcium carbonate products namely ground calcium carbonate and calcium carbonate dispersions.
The company is also involved in the production of kaolin dispersion, processing of ultrafine processed calcium carbonate, trading of other industrial minerals and sales of limestone quarry products.
Its bioplastic compounding business is in the process of commercialisation.
Datuk Bill Tan, managing director of M&A Equity Holdings Berhad, said calcium carbonate is commonly used as a filler material in manufacturing plastic and rubber products industries that are seeing rapid and steady growth in Malaysia and India, the two markets Zantat is strong in.
“Zantat is definitely at a very advantageous position in fulfilling the needs from such a wide range of industries going forward along with the fact that the company is geographically in the markets where these segments are thriving.
“There is so much potential for this industry and thus so much potential for Zantat,” he added.
M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO exercise.