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Monday, December 15, 2014

Red Sena, M'sia's first F&B SPAC to raise RM400m from IPO

PETALING JAYA: Red Sena Bhd, the first food and beverage (F&B) special purpose acquisition company (SPAC) in Malaysia, is looking to raise RM400mil from its initial public offering (IPO).
In its prospectus exposure, the company said it will offer 800 million new shares at an issue price of 50 sen each.
The shares will also entail the issue of 800 million free detachable warrants with exercise price of 50 sen each, on the basis of one warrant for every one new share.
SPACs are companies which have no operations or income-generating business at the point of its IPO, but undertake a listing for the purpose of acquiring operating companies or assets, known as the qualifying acquisition (QA).
The company, which intends to make its QA in the branded packaged F&B business, will offer 80 million shares together with 80 million free warrants to the public.
The remainder 720 million shares and equal warrants will be placed out to selected investors.
The 800 million new shares will make up for approximately 80% of Red Sena’s enlarged share capital.
The other 20% is held by Raintree F&B Sdn Bhd, the promoter and substantial shareholder of Red Sena, comprising 200 million shares and warrants.
Once listed, Red Sena will have a market capitalisation of RM500mil based on the issue price of 50 sen per share.
Together with proceeds from Raintree, which amount to RM10mil, and the IPO proceeds, Red Sena will raise RM410mil in total.
The company said it will place 92% of its proceeds in the cash trust account, and will use RM368mil for its QA. The balance of the proceeds will be used for listing expenses and working capital, among others.
“Our target qualifying acquisition is expected to be an established business which is in growth phase of its business life cycle and have operations in one of our target countries,” it said.
It intends to build the company into a regional player in the processed F&B industry with a focus on branded packaged F&B products.
As reported earlier, Red Sena’s promoters will be subject to an extended moratorium period, up to three years of making its QA.
The management of Red Sena consists of former personnel from Fraser & Neave Holdings Bhd (F&N). They include Datuk Tan Ang Meng (pic), Joseph Tan Eng Guan, Tan Sri Koh Kin Lip, Ismail Abdul Halim and Ian Yoong Kah Yin.
Ang Meng is former F&N chief executive officer and will hold the position of chief strategy officer. Eng Guan is Red Sena’s chief executive officer, and previously held the role of chief financial officer in F&N.
Meanwhile, Ismail will be chief financial officer and Yoong will be executive director, business development.
Ismail is an executive director in biscuit company Khong Guan Enterprise Sdn Bhd. His expertise is in manufacturing and distribution.
Yoong was formerly senior vice-president for the retail broking division in CIMB Investment Bank Bhd.
Koh, the founder of Rickoh Holdings Sdn Bhd is Red Sena’s corporate development director.

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