ACE Market-bound Zantat inks underwriting deal with M&A Securities

From left: Chan Hup Ooi, deputy chairman of Zantat; Ivan Chan, managing director; Datuk Bill Tan, managing director of M&A Equity Holdings Bhd; and Gary Ting, head of corporate finance at M&A Securities Sdn Bhd

KUALA LUMPUR: Zantat Holdings Bhd has signed an underwriting agreement with M&A Securities Sdn Bhd for its listing on the ACE Market of Bursa Malaysia.

In a statement, the calcium carbonate producer said its initial public offering (IPO) involves a public issues of 56 million new shares, or 20% of the enlarges share capital, as well as an offer for sale of 16.8 million existing shares via private placement to selected investors.

Of the 56 million issue shares, M&A Securities will underwrite the 14 million shares to be made available to the Malaysian public as well as the 11.2 million shares pink form allocation for eligible directors, employees and persons who have contributed to the success of Zantat.

The remaining 30.8 million issue shares are reserved for private placement to selected investors.

Zantat said it is one of the biggest producers of high-grade calcium carbonate products in the region with 39 years of operating history in Malaysia.

Through its subsidiaries, Zantat is principally involved in the production of calcium carbonate products namely ground calcium carbonate and calcium carbonate dispersions.

Zantat managing director Ivan Chan said the funds raised from the IPO will go towards its expansion plans and support its continued growth.

“The IPO will see us realise plans to expand the applications of our ground calcium carbonate products to the high value-added hygiene and plastic packaging industries.

“We have observed that manufacturers worldwide, especially those in plastic manufacturing, are gradually moving towards a more environmentally responsible approach to production due to increasing pressures of sustainability requirements, and thus these manufacturers have been adopting calcium carbonate fillers in their formulations to partly replace plastic and also to reduce greenhouse gas emissions," he said.

He said the group has a diversified calcium carbonate product range, and is well positioned to capitalise on this global movement, as it has commercialised several types of ground calcium carbonate products that are suitable for use as fillers used to reduce the composition of plastic, making it more environmentally friendly.

M & A Securities is the adviser, sponsor, underwriter and placement Agent for the IPO exercise.