KUALA LUMPUR: Nova Pharma Solutions Bhd is making its debut on the LEAP Market of Bursa Malaysia on Friday, raising close to RM2.5mil in proceeds.
The engineering solutions company, which focuses on the pharmaceutical and biotechnology sectors, has earmarked RM1.46mil of its proceeds to expand its business and working capital.
The remaining RM1mil would be used for the listing expenses.
At its price of 20 sen per share, the company was valued at a price-earnings ratio (PE) of 10.58 times of its FY16 earnings per share of about 1.89 sen.
Nova Pharma’s businesses are mainly in Malaysia, Indonesia and Taiwan and it has a more than 10-year track record in the industry.
Its customers includes Duopharma (M) Sdn Bhd in Malaysia and TaiMed Biologics Inc in Taiwan.
Its CEO Khoo Boo Wie is a substantial shareholder with a 75.6% stake before the listing. JcbNext Bhd
or formerly known as JobStreet Corp Bhd, owns a 10.3% stake.
After the listing, Khoo’s stake will be reduced to 69.42% and JcBNext’s 9.45%.
Khoo and Ter Leong Tah undertook a management buyout of the company from the previous shareholder and the corporate exercise was completed in March 2015.
Nova Pharma said it plans to set up offices in Taiwan and Indonesia in the second half of 2019 to expand its working relationships with customers and part of its overseas expansion.
“There is a huge potential for the expansion of business in Taiwan as the Taiwanese Government is in the midst of transforming Taiwan into the biotechnology and medical research and development hub in Asia,” the company said in a statement.
For the first nine months of the financial year ended Sept 30, 2017, Nova Pharma posted a profit after tax of RM2.13mil, on the back of RM5.55mil revenue.
On the back of envelope calculation, the company generated about 38.3% of profit after tax margins.
Under the listing exercise, Nova Pharma issued 12.3 million shares at 20 sen a share, which represent 8.25% of its enlarged issued share capital.
Nova Pharma is involved in the provision of engineering solutions for the pharmaceutical and biotechnology industries focusing on the initial design and building phase of pharmaceutical and biotechnology plants.
Its engineering solutions ranging from pre-design including a feasibility study and site selection to design such as conceptual design, basic design, and detailed design to post-design including tendering, procurement and site supervision, as well as to other supporting activities.
Some of the pharmaceutical and biotechnology plants that it has been worked in included oral solid dosage, biopharmaceutical manufacturing, vaccine filling and finishing as well as ophthalmic manufacturing, according to the company’s prospectus.