Bioalpha seeks migration to Main Market

TheEdge Tue, Aug 27, 2019 09:56pm - 4 years View Original


KUALA LUMPUR: ACE Market-listed health supplements maker Bioalpha Holdings Bhd has proposed to transfer its listing to the Main Market of Bursa Malaysia, saying it has met the requirements for the proposed transfer.

This includes satisfying the profit track record requirements, having a healthy financial position and liquidity, as well as an adequate public shareholding spread, Bioalpha said in a stock exchange filing today.

Bioalpha said it achieved an adjusted consolidated profit after taxation (PAT) of RM10.57 million for the financial year ended Dec 31, 2018 (FY18) and an aggregate adjusted consolidated PAT of RM24.4 million between FY16 and FY18.

As such, it said it has exceeded the profit requirements for the migration to the Main Board, which requires the group to have an aggregate PAT of at least RM20 million for the past three full financial years, as well as a PAT of at least RM6 million for the most recent financial year.

As at FY18, Bioalpha's current assets and current liabilities stood at RM89.96 million and RM9.92 million respectively, which translated to a current ratio of 9.07 times.

Meanwhile, it said cash, bank balances and fixed deposits were at RM23.12 million, saying it has sufficient working capital for at least 12 months from today.

"Accordingly, Bioalpha Group is in a healthy financial position, with positive cash flow from operating activities and no accumulated losses based on latest audited financial statements of financial position for FY18," it said.

And as at July 31, Bioalpha’s public shareholding spread was at 57.11%, comprising 5,066 public shareholders holding not less than 100 ordinary shares each, exceeding the minimum requirement of 25% public shareholding in the hands of 1,000 public shareholders.

Bioalpha managing director William Hon said the time is right for the group to "graduate" to the Main Market.

"The proposed transfer would lift the group to greater heights as we believe being Main Market-listed would accord Bioalpha with greater recognition and acceptance amongst investors, particularly institutional investors, and our stakeholders, to better reflect our current scale of operations.

"At the same time, we would also have enhanced access to the broader capital market to support our expansion plans," he said.

He added the group will continue to grow its products and customer base locally as well as in key markets like China in its health supplement manufacturing business, while it plans to add more Constant outlets under its retail pharmacy business.

"We expect sales of house brand products to improve as we add more outlets. Looking ahead, we are positive on making strides as we continue our endeavours to strengthen the business," Hon added.

Subject to regulatory approvals, Bioalpha expects the migration to be completed by the fourth quarter of this year. Its shares closed unchanged at 20 sen today, with a market capitalisation of RM172.04 million.

The content is a snapshot from Publisher. Refer to the original content for accurate info. Contact us for any changes.






Related Stocks

BIOHLDG 0.085
BURSA 7.460

Comments

Login to comment.