KUALA LUMPUR: Bioalpha Holdings Bhd, a health supplements company that will make its debut on the ACE Market of Bursa Malaysia on April 14, plans to fully unlock its retail potential to market its products both locally and overseas.
Executive director Datuk Seri Syed Zainal Abidin Syed Mohamad Tahir said the company was banking on its fully integrated operations from herb farming and production of goods to retail, where it would be protected from the usual market fluctuation of sourcing raw materials.
“We already have an array of inhouse brands, and now, it’s a matter of further promoting them through distribution in the retail pharmacies.
“We are now entering the Middle-East market through our agreement with Fatima Group as our exclusive distributor there,” he told reporters after the launch of the company’s prospectus yesterday by Science, Technology and Innovation Ministry (Mosti) secretary-general Datuk Seri Dr Noorul Ainur Mohd Nur.
“This is the second non-Asian market after Australia we intend to penetrate, and we have the added advantage of halal-certified products,” he said.
Additionally, Bioalpha is also an original design manufacturer serving multinational clients with health products available in local pharmacies.
Bioalpha’s initial public offering (IPO) involves an offer of 100 million new ordinary shares at an issue price of 20 sen per share, comprising 20 million shares available for application by the public and 80 million shares by way of placement.
Bioalpha aims to raise RM20mil from the IPO, a major portion of which will be used for research and development (R&D) expenditure, capital expenditure (capex), repayment of bank borrowings, as well as working capital to finance business expansion and enhance growth strategies.
The company has earmarked a capex of RM3mil to set up a herb-processing plant in Pasir Raja, Terengganu.
Some of the R&D fund will be for upgrading laboratory facilities as well as the development of fermentation processes for four new medicinal mushroom strains.
Bioalpha is expected to have a market capitalisation of about RM92.7mil upon listing.
Meanwhile, Mosti Minister Datuk Dr Ewon Ebin, in his speech read by Noorul said the listing of Bioalpha was crucial as the company had been identified as an anchor company under the Entry Point Project 1 to realise the country’s goal in making the herbal product industry a prime candidate to drive the bio-economy.
Did you find this article insightful?