KUALA LUMPUR (Oct 22): Special purpose acquisition company (SPAC), Red Sena Bhd, which is aiming to be listed on the Main Market of Bursa Malaysia in the first half of December this year, has appointed a group of underwriters for its planned initial public offering (IPO).
In a statement today, Red Sena said it has signed an official underwriting agreement with RHB Investment Bank Bhd, CIMB Investment Bank Bhd, Affin Hwang Investment Bank Bhd and AmInvestment Bank Bhd.
It has also appointed Maybank Trustees Bhd as its custodian to hold in trust, 92% of its gross IPO proceeds.
Its independent non-executive chairman Tunku Datuk Mu’tamir Tunku Mohamed said the appointment of the underwriters, marks another step forward for the group in its listing process.
“We are pleased to have the investment bankers’ support and are confident that our listing exercise will be completed smoothly,” he said.
The company received the greenlight from the Securities Commission Malaysia and Bursa Securities recently, to proceed with its proposed IPO of 800 million new shares of 1 sen each, with one free detachable warrant for each public issue share subscribed, at an issue price of 50 sen per share.
As 90% of the 800 million IPO shares have been made available to selected investors by way of private placement, only the remainder 10% or retail portion is being underwritten.
As a SPAC, Red Sena has no operations or income-generating business and is undertaking the IPO to raise funds to acquire a branded packaged F&B business, otherwise known as a Qualifying Acquisition (QA).
Products that fall within the scope of the branded packaged F&B business include, among others, dairy products, fruit juices, beverages, biscuits, cereals, confectionery items, canned foods, and cooking ingredients which are packed in containers, sold under a recognised brand name and are ready to be consumed or ready to be cooked.
The scope of branded packaged F&B business activities adopted by the company however, excludes the operations of restaurants, cafes and food outlets. Red Sena has further specified that the business it will acquire, will be pork-free and alcohol-free.
“Our management team is led by a group of enterprising senior management executives, professionals and entrepreneurs, including some who have helmed companies involved in the branded packaged F&B business,” said Mu’tamir.
Both the company’s chief executive officer Joseph Tan Eng Guan and chief strategy officer Datuk Tan Ang Meng, have held key management roles in Fraser & Neave (F&N) Holdings Bhd and its subsidiaries.
Red Sena’s chief financial officer Ismail Abd Halim and its corporate development director Tan Sri Richard Koh Kin Lip, through their directorships in biscuit manufacturer Khong Guan Enterprise Sdn Bhd and Cocoaland Holdings Bhd respectively, are also experienced with the branded packaged F&B business.
“Aside from experienced individuals in the field of F&B, Red Sena’s management team also includes key individuals, namely Ian Yoong Kah Yin, who has extensive experience in investment banking work; as well as Richard Ong Kuee Hwa, who is an experienced corporate lawyer.
“The team has the relevant direct experience to carry out the company’s mission to acquire a suitable QA in the branded packaged F&B business,” shared Mu’tamir.
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