KUALA LUMPUR (Oct 11): Rhone Ma Holdings Bhd, which is seeking a listing on Bursa Malaysia's Main Market, today signed an underwriting agreement with Public Investment Bank Bhd (PIVB) for its initial public offering (IPO) exercise

Rhone Ma group managing director Dr Lim Ban Keong said in a statement that PIVB's role as the sole underwriter for its IPO signalled a strong confidence towards the company.

The group, an end-to-end health solution provider and distributor and supplier of food ingredients, intends to offer 42.12 million shares of 50 sen each, which represents 25.37% of equity stake in it.

"The proceeds raised from the IPO exercise [will] be utilised for the group's business expansion including the construction of a new good manufacturing practice-compliant plant in Nilai, Negeri Sembilan, purchase of machineries and equipment, and construction of a warehouse with a three-storey office in Kapar, Selangor," Lim said.

Currently the company has a plant in Petaling Jaya.

Lim did not say how much the IPO proceeds will be.

According to the draft of the IPO prospectus, the proceeds are expected to be used for capital expenditure (77.55%), estimated listing expenses (15.83%) and working capital (6.62%).

The company said it expects to launch its IPO prospectus by the end of November.

PIVB chief executive officer Fong Loong Seng said that with Rhone Ma's growth strategies in place, the IPO will further strengthen the company's financial position as it embarks on the next phase of its business expansion plans.