Rhone Ma looks to raise RM31m from IPO

> Monies will be used to con­struct a new Good Man­u­fac­tur­ing Prac­tice plant, among oth­ers


KUALA LUMPUR: Rhone Ma Hold­ings Bhd, an end-to-end an­i­mal health so­lu­tion provider, en route for a list­ing on the Main Mar­ket of Bursa Malaysia Se­cu­ri­ties Bhd, is look­ing to raise RM31.59 mil­lion from its ini­tial pub­lic of­fer­ing (IPO) ex­er­cise.

The group is to be listed on Dec 19, 2016 with a mar­ket cap­i­tal­i­sa­tion of RM124.5 mil­lion.

Pro­ceeds to be raised from the IPO ex­er­cise will be used mainly for its cap­i­tal ex­pen­di­ture (77.55%), work­ing cap­i­tal (6.62%) and list­ing ex­penses (15.83%).

Its group man­ag­ing di­rec­tor Dr Lim Ban Keong told re­porters at its prospec­tus launch yes­ter­day, the group’s cap­i­tal ex­pen­di­ture in­cludes the con­struc­tion of a new Good Man­u­fac­tur­ing Prac­tice (GMP)-com­pli­ant plant in Ni­lai, pur­chase of ma­chin­ery and equip­ment, as well as con­struc­tion of a new ware­house in Ka­par, Klang.

“We plan to spend around RM18 mil­lion for the GMP-com­pli­ant plant con­struc­tion and another RM6.5 mil­lion for the ware­house,” Lim said, not­ing the plant will be used to man­u­fac­ture its phar­ma­ceu­ti­cal prod­ucts and feed ad­di­tives.

Cur­rently, it has a GMP-com­pli­ant plant in Pe­tal­ing Jaya.

While Malaysia re­mains its big­gest mar­ket, Lim said the group also has a pres­ence in re­gional mar­kets such as Brunei, In­done­sia, the Philip­pines, Sin­ga­pore, Thai­land and Viet­nam.

“By be­ing a listed com­pany on the main board, we hope it will give us the added­value to pen­e­trate fur­ther into our ex­ist­ing for­eign mar­kets,” he added, not­ing as to date, its ex­port mar­ket con­trib­utes less than 3% of its rev­enue, while the rest comes from its do­mes­tic busi­ness.

The IPO ex­er­cise en­tails a pub­lic is­sue of 42.12 mil­lion new or­di­nary shares, of which 8.3 mil­lion shares will be made avail­able for the Malaysian pub­lic, 16.6 mil­lion shares for bu­mipu­tra in­vestors ap­proved by the Min­istry of In­ter­na­tional Trade and In­dus­try, and some 9.4 mil­lion shares to be placed out to se­lected in­vestors.

The re­main­ing 7.82 mil­lion shares will be for el­i­gi­ble direc­tors, em­ploy­ees and oth­ers. Ap­pli­ca­tions for the pub­lic is­sue will close on Dec 6, 2016.

Es­tab­lished in Septem­ber 2000, Rhone Ma’s end-to-end an­i­mal health so­lu­tion com­prises the pro­vi­sion of ve­teri­nary ad­vi­sory and con­sul­ta­tion ser­vices, di­ag­nos­tic lab­o­ra­tory analy­ses and re­search and de­vel­op­ment ac­tiv­i­ties.

The group also man­u­fac­tures and dis­trib­utes an­i­mal prod­ucts, as well as food in­gre­di­ents.

Cur­rently, it has more than 300 an­i­mal health prod­ucts, in­clud­ing vac­cines, phar­ma­ceu­ti­cals and feed ad­di­tives, with more than 30 types of food in­gre­di­ent prod­ucts.

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