Moody's outlook on the Korean banking system has been negative since May 2016.
KUALA LUMPUR: Rhone Ma Holdings Bhd
's public offer of 8.30 million news shares at an offer price of 75 sen each was oversubscribed by 22.46 times.
Tricor Investor & Issuing House Services Sdn Bhd said on Thursday there were 6,784 applications for 194.749 million new shares with a value of RM146.06mil from the Malaysian public.
For the Bumpiputera portion, there were 3,532 applications for 79.047 million new shares, or an oversubscription rate of 18.05 times.
For the other Malaysian public portion, there were 3,252 applications for 115.70 million new shares, or an oversubscription rate of 26.88 times.
Rhone Ma, which is involved in end-to-end animal health solution services and supply of food ingredients, offered for sale 42.12 million new shares of 75 sen each.
It plans to raise RM31.59mil from the listing on the Main Market of Bursa Malaysia which is scheduled to be on Dec 19.
The public issue of 42.12 million new shares comprised of 8.30 million shares available to the Malaysian public; 7.82 million shares offered to eligible directors and employees of the company and its subsidiaries; 16.60 million shares to be placed out to approved Bumiputera investors; and 9.40 million shares to be placed out.
StarBiz reported Rhone Ma plans to focus more on regional expansion.
Group managing director Dr Lim Ban Keong was quoted saying that the IPO would will enhance its brandname further in the existing markets.
Rhone Ma is now present in Brunei, Indonesia, Singapore, Myanmar, Thailand and Malaysia.
Lim had stated that less than 3% of Rhone Ma’s total revenue is from the export market, hence the IPO was needed to “give us a further boost to expand regionally”.
Of the RM31.59mil to be raised from the IPO, about 78% would be used for capital expenditure, about 7% for working capital and the remaining for defrayment of listing expenses.
A total of RM18mil would be used to build a good manufacturing practices (GMP)-compliant plant in Nilai, Negeri Sembilan and RM6.5mil to build a warehouse with three-storey office in Kapar, Klang.
Construction of the Nilai plant on 3.8 acre land would be used for manufacturing of pharmaceutical products and slated to begin in the second quarter of 2017.
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