KUALA LUMPUR (Sept 14): Capitalhealth Holdings Bhd, which mainly distributes food supplements, is seeking to raise funds from the ACE Market for expansion and operations.
Founded by husband and wife pharmacists, the company is aiming to launch more than two dozen new products that include household medical devices as well as venture into over-the-counter and prescription drugs, according to its draft prospectus.
To cope with the expansion in products and inventory holdings, Capitalhealth is planning to refurbish its warehouse in Klang where the company is currently based.
Capitalhealth mainly formulates and distributes dietary supplements, fortified food and beverage products, personal care products, household medical devices and herb-based products under in-house brands such as ‘Excelife’ and ‘BLOOMFIT’.
All of its current products are made by contract manufacturers and sold to independent pharmacies, retail pharmacy chains, clinics and hospitals.
Proceeds from the initial public offering (IPO) have also been earmarked for sales and marketing activities as well as general working capital, repayment of bank borrowings, and to cover listing expenses.
Capitalhealth managing director Ker Chin Keong is also cashing out part of his existing stake in the company he co-founded with his wife and executive director Choy Wan Ru in an offer for sale under the IPO.
All in all, the listing is offering up to 27% of the company, which made a net profit of RM5 million on revenue of RM32 million last year, all of it derived locally.
M&A Securities is the IPO’s principal adviser, sponsor, underwriter and placement agent.