KUALA LUMPUR (July 22): To further expand its operations, InNature Bhd, the retailer and distributor of The Body Shop products, is offering up to 177.27 million shares in an initial public offering (IPO) set for the Main Market.

The 177.27 million shares, representing 25.1% of the enlarged issued share capital, will comprise 74.07 million new shares and an offer for sale of 103.20 million existing shares.

The offer shares of 103.20 million will be allocated to Malaysian and foreign institutional and selected investors, including Bumiputera investors approved by the Ministry of International Trade and Industry.

Of the 74.07 million new shares, 57.94 million will be allocated to Malaysian and foreign institutional and selected investors, 14.13 million will be allotted to the Malaysian public while 2 million shares have been reserved for the directors and eligible employees of InNature and its subsidiaries.

The issue price, and the opening and closing dates of the IPO, have yet to be fixed, according to its prospectus exposure posted on the Securities Commission Malaysia (SC) website today.

InNature is principally involved in the retailing and distribution of The Body Shop products in Malaysia, and Vietnam, and plans to commence operations in Cambodia in the coming months.

It has been in operation for over 34 years since it opened the first The Body Shop store in Malaysia in 1984 at Plaza Yow Chuan in Ampang, Kuala Lumpur.

InNature has 89 points of sale in West Malaysia, Sabah and Labuan, 26 points of sale in Vietnam as well as online platforms.

It plans to use the proceeds of the IPO for capital expenditure, working capital as well as new business development.

For capital expenditure, it plans to expand and upgrade office facilities, renovate existing points of sale, upgrade IT network infrastructure, as well as expand the number of The Body Shop points of sales, including setting up a new operation in Cambodia.

It has not commenced operations in Cambodia but expects to open its first point of sale in the country by the second half of 2019.

As part of its plan to diversify, InNature also plans to develop the Natura beauty brand in Malaysia. In the past three years, InNature grew its earnings by 63.2% with profit after tax of RM45.03 million for the financial year ended Dec 31, 2018 (FY18) from RM27.59 million in FY16. For the same period, its revenue rose 15.4% to RM184.47 million in FY18 from RM159.90 million in FY16.