Orgabio makes ACE Market debut at 36c/share

Left to right: Ean Yong Hen Loen, Executive Director of Orgabio Holdings Bhd;Ean Yong Hien Voon, CEO/Executive Director; Datin Lai You Mooi, substantial shareholder;Datuk Ean Yong Tin Sin, founder and Executive Deputy Chairman; Datuk Bill Tan, Managing Director of Corporate Finance, M&A Securities Sdn Bhd; and Datuk Wong Gian Kui, Director of M&A Securities

KUALA LUMPUR: Instant beverage premix manufacturer Orgabio Holdings Bhd made its debut on the ACE Market at 36 sen a share, which represents a five sen premium to its initial public offering (IPO) price.

The stock saw 4.82 million shares crossing hands at the opening bell, making it the top traded counter on Bursa Malaysia.

In a statement, Orgabio deputy chairman Datuk Ean Yong Tin Sin said the proceeds of the listing will go towards a new factory and machinery to support the efficiency of its existing manufacturing activity as well as increase manufacturing capacity.

He said the new factory will enable Orgabio to customise the design for its manufacturing area which, in turn, will allow it to optimise the configuration of its machinery to enhance manufacturing workflow and efficiency.

“Further, we are not able to acquire and place more machines in our Beranang factory which result in us only accepting orders within our current manufacturing capacity.

"The new factory in Semenyih, Selangor which is expected to be operational by August 2023, will increase the Company capacity to 230 million sachets per annum,” he added.

As at 31 December 2021, Orgabio’s total annual production capacity is 117.2 million.

According to Ean Yong, the company also intends to further expand its customer base in the direct selling segment by securing more local and overseas direct selling companies.

“In the past four financial years ended 30 June 2018, 2019, 2020 and 2021, our sales to direct selling companies contributed between 61.4% and 80.6% to our Group’s revenue. As at 17 May 2022, we have nine local direct selling companies as our customers,” he added.

He said the company will also leverage on its global reputation to further expand its export markets through various marketing activities.

As at Dec 31, 2021, export sales contributed 21.9% to the group’s overall revenue.

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Orgabio , debut , ACE Market , IPO , listing , Ean Yong Tin Sin


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