Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily, on December 20, 2016.

 

KUALA LUMPUR: Newly listed Rhone Ma Holdings Bhd plans to focus on expanding its product range as well as beefing its presence in four countries in the region, namely Indonesia, Thailand, Vietnam and the Philippines.

The group, an end-to-end animal health solution provider which also distributes and supplies food ingredients, also intends to get its 24 products (11 pharmaceuticals and 13 feed additives) registered regionally, said group managing director Dr Lim Ban Keong.

In the longer run, Lim said the company also plans to expand its total solution provider (TSP) services, such as veterinarian advisory and antibiotic residue-free programmes, to its regional partners.

“We want to educate our partners in the regional market on this [TSP] concept, that we are capable to train their people. We have proven the end-to-end solution provider [concept], and with this they can grow their market,” he told a press conference after the company’s listing on the Main Board of Bursa Malaysia yesterday.

Asked about the company’s plan to diversify into organic feed for livestock, Lim spoke of a collaboration with the Veterinary Services Department to help guide farmers produce organic livestock, which is still in its infancy stage.

He said the department launched the guidelines for organic feed early this year.

“It depends on the supply and demand. Whenever they (producers and farmers) are ready, we will start [focusing on organic feed],” said Lim.

Rhone Ma shares debuted at 82 sen — a 9.33% premium over their initial public offering (IPO) price of 75 sen — and went on to close the first day of trading at 87 sen, with a market capitalisation of RM145.25 million.

The IPO entails an issue of 42.122 million new shares at 75 sen each. The public portion was oversubscribed by 22.46 times.

The IPO proceeds of RM31.59 million will be utilised for the company’s capital expenditure, which includes the construction of a new good manufacturing practice-compliant plant in Nilai, Negeri Sembilan, and purchase of machineries and equipment, and the construction of a new warehouse in Kapar, Selangor.

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