Orgabio signs underwriting deal with M&A Securities

Orgabio executive deputy chairman Datuk Ean Yong Tin Sin said the company was delighted to have secured Hai-O Enterprise Bhd as its cornerstone investor. (File pic shows Yong with some of the companies products.)

KUALA LUMPUR: Instant beverage pre-mix manufacturer Orgabio Holdings Bhd has signed an underwriting agreement with M&A Securities Sdn Bhd in conjunction with its initial public offering (IPO) exercise on the ACE Market of Bursa Malaysia.

Orgabio, in a statement, said the IPO would involve the issuance of 96.7 million new shares in the company, representing 39% of the enlarged share capital.

Under the agreement, M&A Securities will underwrite a total of 18.6 million new shares made available for the Malaysian public and its eligible directors and employees as well as persons who have contributed to the success of Orgabio Group.

The remaining 78.1 million new shares will be placed out to selected bumiputra investors approved by the International Trade and Industry Ministry and selected investors by way of private placement.

Orgabio executive deputy chairman Datuk Ean Yong Tin Sin said the company was delighted to have secured Hai-O Enterprise Bhd as its cornerstone investor.

“Having developed our relationship over a number of years, we see Hai-O Enterprise as a long-term partner that is closely aligned with our ethical and principled approach in doing business. Their commitment is a strong vote of confidence in our company, business model, strategy and team,” he said.

The proceeds from the IPO would mainly be used to fund and repay bank borrowings secured for the construction of its new factory in Semenyih, Selangor.

Orgabio is scheduled to be listed on the ACE Market by December 2021. M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO exercise.