Friday 29 Mar 2024
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KUALA LUMPUR: Bioalpha Holdings Bhd, a pharmaceutical company majority owned by the Ministry of Finance (MoF) and helmed by William Hon, and Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir (pic), former managing director of Proton Holdings Bhd, is planning for a listing on the ACE Market of Bursa Malaysia.

According to a draft prospectus submitted to the Securities Commission Malaysia, Bioalpha manufactures and sells semi-finished and finished health supplement products comprising processed herbs, formulated ingredients, functional foods, as well as herbal and non-herbal supplements.

The company reported a net profit of RM6.29 million in the financial year ended December 2013, on revenue of RM24.57 million. Its principal markets include Malaysia, which contributed 65.91% to the total revenue, Indonesia (29.48%), Australia (3.89%), and Cambodia and Hong Kong (0.72%).

Recently, Bioalpha and Angkatan Koperasi Kebangsaan Malaysia Bhd signed a memorandum of understanding to establish a joint-venture company to manage the MyAngkasa Pharmacy network in Malaysia.

Bioalpha also signed an agricultural agreement with the Performance and Delivery Management Unit or Pemandu for an entitlement of a grant of up to RM20 million to carry out pre-clinical and clinical studies on two of its herbal supplement products for diabetes and hormone therapy replacement.

Bioalpha’s current shareholders are the MoF with a 51.4% stake (22.4% held through Khazanah Nasional Bhd), Hon (33.6%) and Syed Zainal (1%). In the draft prospectus, Bioalpha proposed to issue 100 million in new shares, representing 21.58% of its enlarged issued and paid-up capital upon listing. Post-listing, the MoF’s stake in Bioalpha will be dilluted to 40.31%, Hon’s to 26.35%, and Syed Zainal’s to 0.75%.

Proceeds from the initial public offering, which have yet to be finalised, will be used for capital expenditure (17.65%), research and development (17.65%), repayment of bank borrowings (15.41%), working capital (35.76%) and listing expenses (13.53%).

Hon is currently the managing director and chief executive officer of Bioalpha. Trained as an auditor, he was  vice-president of business development in Country Heights Holdings Bhd from 2000 to 2005, when he left and founded Bioalpha.

Syed Zainal is Bioalpha executive director and in charge of corporate and strategic planning.


This article first appeared in The Edge Financial Daily, on October 3, 2014.

 

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