Zantat’s IPO public portion oversubscribed by 130.15 times

KUALA LUMPUR: High grade calcium carbonate powder producer Zantat Holdings Berhad’s (Zantat) initial public offering (“IPO”) for the public portion has been oversubscribed by 130.15 times.

A total of 13,755 applications seeking 1.84 billion new shares with a value of RM459.01 million were received from the Malaysian public for 14.0 million new shares that were made available for public subscription.

The Bumiputera public portion of shares was oversubscribed by 137.99 times, after a total of 8,151 applications for 972.94 million new shares received.

For the non-Bumiputera public portion, a total of 5,604 applications for 863.11 million new shares were received, which represents an oversubscription rate of 122.30 times.

Meanwhile, the 11.2 million new shares for its eligible Directors, employees and persons who have contributed to the success of Zantat Group have also been fully subscribed.

In addition, its Placement Agent has confirmed that 47.6 million shares made available for application by way of private placement to selected investors have been fully placed out.

Ivan Chan, Managing Director of Zantat, said with the IPO funds in place, the Company is well-positioned to implement its expansion plans and capitalise on the growth opportunities in the calcium carbonate and biodegradable products industries.

“Moving forwards, we will utilise our proceeds to expand our ground calcium carbonate production line, as well as to upgrade our existing R & D facilities within Zantat Perak Plant 1.

“With the upgraded R&D centre and enhance testing capabilities, we will be focusing on our in-house product development and enhancement of our products for new and existing customers pertaining to our calcium carbonate products, and also our new downstream business venture, bioplastic compounding, undertaken by ZANECO which was incorporated back in 2021.

“As part of our strategy to expand the applications of our product range, we intend to develop more varieties of functional calcium carbonate grades and bioplastic compounds that can contribute to creating a greener world.

“Our expansion into bioplastic compounding is supported by the Malaysian government’s commitment to a circular economy and sustainability,” he added.

Zantat, which is scheduled to list on the ACE Market of Bursa Malaysia Securities Berhad on 27 March 2024, aims to raise RM14.0 million from its IPO.

Under the listing exercise, Zantat is issuing 56.0 million new shares, representing 20.0% of the enlarged share capital at an issue price of RM0.25 per share.

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 million after listing.

All notices of allotment for these shares will be mailed to successful applicants on or before March 25, 2024.

M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for the IPO exercise.