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KUALA LUMPUR (Dec 27): Wellspire Holdings Bhd, which is involved in the distribution of consumer-packaged foods in Thailand, has set its initial public offering (IPO) price at 23 sen per share.
Aiming to list on the ACE Market of Bursa Malaysia on Jan 16, 2023, the IPO entails a public issue of 124.6 million new shares, and an offer for sale of 124.6 million existing shares, according to a statement by the company on Tuesday (Dec 27).
Based on its enlarged issued share capital of approximately 712.13 million shares and IPO price of 23 sen per share, the company will have a market capitalisation of approximately RM163.79 million upon listing.
Of the 124.6 million public issue shares, a total of 36 million shares will be made available to the Malaysian public, while 10 million shares will be allocated to eligible directors, employees of the group, and persons who have contributed to the success of the group. The remaining 78.6 million shares will be allocated by way of private placement to selected investors.
The company aims to raise approximately RM28.66 million from its IPO, of which RM16 million will be utilised for the acquisition or construction of a warehouse and operational facilities in Thailand, and RM5.96 million for working capital. Another RM6.7 million will be allocated to defray listing expenses.
Wellspire chief executive officer and executive director Mo Guopiao said the company distributes snack food products to 43 of its sales and distribution points in the central, northeastern, northern, and southern regions of Thailand, allowing it to have a wide coverage of end consumers for its snack food products.
“Our group’s capabilities have helped us to establish a good track record over the years. We believe that the business relationship with our major customers, who are key retailers in Thailand, will continue to provide us with market access to our products for end consumers, thus allowing us to grow our footprint in Thailand.
“The forthcoming listing of Wellspire is an important milestone for our group, and we believe that the IPO will strengthen our presence in the industry, and allow us to raise our profile to help us in our expansion plan,” he added.
On its financial performance, Wellspire’s profit after tax and minority interests (Patami) more than tripled from RM3.12 million for the year ended Dec 31, 2019 (FY2019) to RM11.83 million for FY2020. For FY2021, Patami dipped to RM11.2 million, impacted by the Covid-19 conditions in Thailand, its fact sheet showed.
Revenue, however, increased for two consecutive years from RM58.8 million for FY2019 to RM119.71 million for FY2020, and RM136.71 million for FY2021.
As of June 30, 2022, Wellspire's cash and bank balances stood at RM12.89 million, while its total borrowings were at RM6.05 million.
TA Securities Holdings Bhd is the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO exercise.