KUALA LUMPUR: Orgabio Holdings Bhd, the third largest on the spot beverage premix producer within the nation, made its debut on the ACE Market of Bursa Malaysia opening at 36 sen per share – a 5 sen bump above its preliminary public providing (IPO) value of 31 sen per share.
In an inventory ceremony yesterday, the group’s founder and govt deputy chairman Datuk Ean Yong Tin Sin mentioned the proceeds from the IPO can be used for the enlargement of the corporate’s manufacturing capability.
“We will use it to finance the construction of our new factory in Semenyih. The group will be able take on new customers and larger orders arising from its plans to enlarge its customer base in the direct selling segment, expand export sales and the range of product offerings,” he mentioned.
The new manufacturing facility is predicted to lift the group’s manufacturing capability to 230 million sachets every year. As at Dec 31, 2021, its whole annual manufacturing capability is 117.2 million sachets. Orgabio raised nearly RM30mil by its itemizing train from the general public subject of 96.7 million shares.
Besides enlarging its manufacturing line, chief govt director Ean Yong Hien Voon mentioned the group was rising its home manufacturers, EveryDay and BrogaHill.
“Currently our house brands are available on online platforms like Shopee and Lazada. Offline, they are available in pharmacies. We are also going to continue to expand our product range to grow our business and look for potential distributors and market channels,” he mentioned.
Going ahead, he maintained an optimistic outlook for the group because the demand for immediate combine drinks was on the rise in tandem with the rising want for comfort amongst customers.
“We are optimistic about our industry. Firstly, three-in-one instant beverages are very convenient. Secondly, we foresee that there will be a strong demand as more brand owners will want to outsource their manufacturing activities to our company. Thirdly, we are benefiting from Jakim’s halal certification,” he mentioned. In line with this, Tin Sin was assured that the group can be transferred to the Main Market in three years.
“Our revenue is still picking up, so we are confident that in three-years, we can reach the main board,” he mentioned. While the group’s income had not been impacted by the pandemic, gross revenue margins have been affected by the upper price of uncooked and packaging supplies.Chief govt director Ean Yong Hien Voon famous that non-dairy creamer, considered one of its foremost uncooked supplies, had seen a rise of greater than 40% in contrast with the earlier 12 months. On common, packaging supplies like bins, cartons and aluminum foil noticed an increase of greater than 10%.
“During the pandemic our sales were actually growing. We were not affected by the pandemic because our industry is considered an essential industry. Even if the market is not good, people are still consuming three-in-one instant mix beverages.”
The counter closed at 34 sen a share yesterday.
