KUALA LUMPUR (Mar 26): Bioalpha Holdings Bhd, which counts the Malaysian government as its controlling shareholder, expects to raise RM20 million from its initial public offering (IPO).

Health-supplement manufacturer Bioalpha plans to list on the ACE market of Bursa Malaysia this April 16. Bioalpha's IPO comprises the proposed sale of 100 million new shares in the firm at 20 sen each.

"Through strategic expansion plans we have in place, I believe that Bioalpha will be ideally positioned to take advantage of the burgeoning market opportunities, buoyed by the equity capital we now have access to," Bioalpha managing director and chief executive officer William Hon said during its IPO prospectus launch here today.

According to Hon, Bioalpha will offer 100 million new shares, of which, 80 million units will be placed to selected investors. The remaining 20 million shares will be offered to the public.

Hon said the bulk of the RM20m IPO proceeds would be used to finance Bioalpha's research and development and capital needs, besides repaying bank borrowings.

Bioalpha manufactures semi-finished and finished health supplement products.

The company's major shareholders and directors are worth noting. The Ministry of Finance Inc owns a controlling 51.4% indirect stake in Bioalpha, of which, a 22.4% portion is held via Khazanah Nasional Bhd.

Hon owns a 33.6% interest in Bioalpha which is linked to former Proton Holdings Bhd chief executive officer Datuk Seri Syed Zainal Abidin.

Syed Zainal, who owns 1% in Bioalpha, is an executive director with the company.