Malaysia Digest: Hovid to delist; Techbond raises $9.5m from IPO | #VentureCanvas

Ka Kay Lum | DealStreetAsia – IPO


Malaysia-based pharmaceutical company Hovid Bhd will soon be delisted from the main board of Bursa Malaysia while industrial adhesives manufacturer Techbond Group Bhd has raised RM39.67 million ($9.5 million) from its IPO.

Hovid Bhd secures approval for delisting

Malaysia-based pharma company Hovid Bhd will soon be delisted from the main board of Bursa Malaysia, after it secured shareholders’ approval at an EGM on November 26, it said in a stock filing on Tuesday.

The rationale for the proposed privatisation was due to higher operating costs and the revocation of its manufacturing licences, coupled with the challenging economic and changing market environment.

By taking the company private, the joint offerors would have greater flexibility in deciding on the future direction of Hovid.

Joint offerors of the privatisation, Hovid managing director David Ho and Fajar Astoria Sdn Bhd hold 88.62 per cent stake in the company. Fajar Astoria is a joint vehicle formed by Ho and private equity firm TAEL Partners to embark on a voluntary takeover offer last October to acquire all remaining shares not owned in Hovid.

Techbond Group raises $9.5m from IPO

Industrial adhesives manufacturer Techbond Group Bhd has raised RM39.67 million ($9.5 million) from its IPO as it makes its debut on the main board of Bursa Malaysia on Wednesday.

The company plans to use the proceeds to build a factory, purchase machinery, equipment and working capital. The rest would be used as listing expenses. Techbond issued 60.1 million new shares at an issue price of 66 sen.

Techbond is also planning to expand its businesses in Vietnam, which is the company’s largest market, followed by Malaysia and Indonesia.

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Source: Malaysia Digest: Hovid to delist; Techbond raises $9.5m from IPO