Zantat to raise RM14 mln from IPO
High grade calcium carbonate powder producer Zantat Holdings Berhad (Zantat) expects to raise RM14 million under its listing exercise on the ACE Market of Bursa Malaysia.
The Company plans to use RM3.8 million (27.4 per cent) raised from the initial public offering (IPO) to upgrade its research and development (R&D) centre and purchase additional test and product development equipment.
Ivan Chan, managing director of Zantat, said the upgrading of R&D facilities within Zantat Perak Plant 1 is crucial to facilitate the Company’s product expansion plan.
“With the upgraded R&D facility and enhanced testing capabilities, we will be focusing on our in-house product development and enhancement including testing of our products as well as for new and existing customers pertaining to our calcium carbonate products and bioplastic compounds.
“As part of our strategy to expand our product range, we intend to develop three new bioplastic compounds and enhance our ultrafine grade ground calcium carbonate namely “Zanelite” series and produce more varieties to generate new revenue stream,” he added.
A further RM1.4 million (9.6 per cent) of the proceeds will be used to purchase high efficiency machine components such as fully integrated automatic robotic arm palletising system and high-efficiency motors to automate its packing system and move towards industrial automation.
The remainder of the proceeds will be used to upgrade Calrock Perak Plant’s infrastructure amounting to RM1.0 million (7.2 per cent); working capital RM1.4 million (10.2 per cent), repay bank borrowings RM3.4 million (24.2 per cent) and to defray the estimated listing expenses of RM3 million (21.4 per cent).
Under the listing exercise, Zantat is issuing 56 million new shares, representing 20 per cent of the enlarged share capital at an issue price of RM0.25 per share.
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.
As part of its listing exercise, the existing shareholders of the company will also make an Offer for Sale of 16.8 million existing shares to selected investors by way of Private Placement.
Based on the enlarged share capital of 280.0 million shares, Zantat is expected to have a market capitalisation of RM70.0 million after listing.