Nova Wellness to raise RM44.9 million from IPO

PETALING JAYA: Nova Wellness Group Bhd is targeting to raise RM44.91 million from its proposed listing on the ACE Market of Bursa Malaysia.

The company is involved in the development, production and sales of nutraceutical and skincare products under its house brands. It has a wide range of products comprising 49 dietary supplements, 11 functional food products and 28 skincare products.

According to its prospectus, Nova Wellness’ initial public offering (IPO) involves a total offering of up to 81.66 million new shares, of which 16 million shares available for the Malaysian public; 15 million shares for eligible directors, employees and business associates; and

50.66 million shares by way of private placement to identified investors.

Based on an issue price of 55 sen per share, its market capitalisation will be RM174.76 million upon listing on July 20.

Nova Wellness managing director and chief research officer Phang Nyie Lin said the IPO will create opportunities for the group to engage with a broader network of potential business partners to enhance its business and market presence.

About 36.74% of the proceeds will be utilised for the construction of a new good manufacturing practice-compliant production facility; 25.83% for research & development activities; 11.13% for the expansion of the retail market presence; and 20.51% for working capital.

Nova Wellness reported a 1.3% increase in net profit to RM13.71 million for FY17 compared with RM13.54 million for FY16.

Its board recommends distributing a dividend of 30% of annual audited profit for FY18 to shareholders.

Kenanga Investment Bank Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.