KUALA LUMPUR (Dec 16): Food and bevereage (F&B) special purpose acquisition company (SPAC) Red Sena Bhd aims to raise RM400 million from its public issue of 800 million shares, at an offer price of 50 sen per share.

Red Sena is led by Tan Eng Guan as its chief executive officer (CEO), who was a former chief financial officer of Fraser & Neave (F&N) Holdings Bhd and the general manager of group finance of Tan Chong Motors.

Its chief strategy officer Datuk Tan Ang Meng, previously served as the CEO of the F&N group for a decade.

The initial public offer will be sweetened with 800 million free detachable warrants, on the basis of one free warrant per share.

Out of the total issue, 80 million shares will be allocated for retail investors, while the balance 720 million shares will be made available for selected investors via a private placement.

Red Sena has also raised gross proceeds of RM10 million from the subscription by Raintree F&B Sdn Bhd of 200 million shares, at five sen per share, bringing its total gross proceeds to RM410 million.

With the subscription, Raintree holds a 20% equity stake in Red Sena, while the public will hold the balance 80% stake.

According to its draft prospectus, Red Sena has set aside RM368 million from its proceeds for its qualifying acquisition, while RM15.65 million from its proceeds will be used for working capital purposes.

Meanwhile, RM10 million has been earmarked for the remuneration of its management team, while the balance RM16.35 million will be for its listing expenses.

“Upon our listing as a SPAC, our company intends to acquire F&B asset(s) with established market or companies with strong brand names, by leveraging on our management team's wide network and know-how,” it said.

The company said the qualifying asset will be located in one of its target countries, namely Malaysia, Indonesia, the Philippines, Singapore, Thailand and Vietnam.