Zantat surges to 40c/share on ACE debut
KUALA LUMPUR: Zantat Holdings Bhd opened at 40 sen a share on its first day of trading on Bursa Malaysia, representing a 15 sen or 60% jump from its initial public offering (IPO) price of 25 sen a share.

The high-grade calcium carbonate producer, which was listed on the ACE Market, saw 5.96 million shares changing hands at the opening bell.

Zantat raised RM14mil from the IPO exercise, to partly fund its venture into the bioplastics value chain, and for the expansion of its core business of calcium carbonate production.

Of the proceeds, RM3.8mil will be used to upgrade its R&D facilities focusing on both bioplastic compounding and calcium carbonate, RM1.4mil will go towards high efficiency machine components and facilitate industrial automation, and an additional RM1mil will be used to upgrade a major calcium carbonate production plant.

Of the remaining proceeds, RM3.4mil will be utlised for repaying bank borrowings and RM1.4mil for working capital and listing expenses.

In a statement, Zantat said it has started the groundwork for the expansion downstream into manufacturing bioplastic compounds.

Managing director Ivan Chan said the company’s maiden bioplastic compound, produced for compostable packaging film by its newly-established polymer arm Zaneco Sdn Bhd, went commercial this quarter.

“We are committed towards establishing our footprint in the bioplastic compound supply chain to further value add on our expertise developed through the years in this industry.

“Our core business activities continue to benefit from domestic and exports market, both of which contribute significantly to our earnings, and allow us to remain resilient through market cycles,” he added.

He said the downstream expansion into bioplastic compound taps on Zantat’s expertise in the handling of high-grade calcium carbonate, a key material for quality plastic manufacturing.

It also leverages Zantat’s customer base, which includes plastic product manufacturers.

Meanwhile, the company plans to develop three new bioplastic compounds, namely for stretch film (packaging), mulch film (plastics along soil for crop production) and marine-degradable film.

It said several customers from Malaysia, India, Indonesia and Singapore have already been identified.
Stock on the Move,Zantat,IPO,listing,ACE Market,bioplastic
KUALA LUMPUR: Zantat Holdings Bhd opened at 40 sen a share on its first day of trading on Bursa Malaysia, representing a 15 sen or 60% jump from its initial public offering (IPO) price of 25 sen a share.