By FARA AISYAH / Pic By MUHD AMIN NAHARUL
NOVA Pharma Solutions Bhd made its debut on Bursa Malaysia’s Leading Entrepreneur Accelerator Platform (LEAP) Market at 24 sen, 20% or a four sen premium over its reference price, with a total of 1,000 shares exchanged.
Nova Pharma ED and CEO Khoo Boo Wie (picture) said the raise indicates the confidence level sophisticated investors have for the company.
“Looking at this, we have a good faith that we will continue to grow alongside the industry. It has always been our ambition to graduate to the next market, maybe in the next three to five years,” Khoo told reporters at a press conference after the company’s listing in Kuala Lumpur last week.
The excluded issue of 12.3 million new ordinary shares at an issue price of 20 sen per share — representing 8.25% of the enlarged issued share capital of the company — were allotted to selected sophisticated investors.
Based on the issue price of 20 sen per share, the excluded issue has raised gross proceeds of RM2.46 million.
The proceeds raised from the excluded issue will be predominantly utilised for working capital of RM960,000, future business expansion of RM500,000, as well as estimated expenses of RM1 million in relation to the listing.
Khoo said Nova Pharma plans to establish new offices overseas where it has executed notable projects in the past, including Taiwan and Indonesia, in the second half of 2019, which will be financed through the company’s internally- generated funds and proceeds raised from the excluded issue.
The engineering solutions company’s businesses for the past three financial years are mainly focused in Malaysia, Indonesia and Taiwan.
The company has projected a huge potential for the expansion of its business in Taiwan as the Taiwanese government is in the middle of transforming the country into a biotechnology and medical research and development (R&D) hub in Asia.
In addition to the two countries, Khoo said Nova Pharma may also consider having offices in other South-East Asian countries within the next two to four years.
Prior to its management buyout exercise of the entire equity interest in NNE Pharmaplan Sdn Bhd in 2015, Nova Pharma had also completed two turnkey projects locally, including a monoclonal antibodies facility with modular approach in Nilai, Negri Sembilan, and a R&D herbal laboratory in Glenmarie, Selangor.
The company also aims to expand through the provision of turnkey projects as part of its future plan.
“By venturing into turnkey projects, Nova Pharma will have a better control of project implementation from predesign to commissioning of the plants.
“We intend to embark into this business area ideally between 2020 and 2022, while we recruit more skilled technical personnel to manage the turnkey projects effectively,” Khoo added.
He also said the future plan will be financed through internally- generated funds and/or bank borrowings.