Nova Pharma lists at 20pc premium on LEAP market debut

March 9, 2018 @ 10:38AM

KUALA LUMPUR: Nova Pharma Solutions Bhd made its debut on the Leading Entrepreneur Accelerator Platform (LEAP) Market of Bursa Malaysia this morning.

At the opening, Nova Pharma's share rose 20 per cent or 4 sen premium to 24 sen with 1,000 shares traded.

Chief executive officer Khoo Boo Wie said the company's listing on LEAP market was a good platform to determine the risk and mark its fair value.

"We are a small medium enterprise (SME). The new listing platform suits us very much. We expect to list on the ACE market in the next three to five years," he said at a press conference, today.

Khoo said today's listing was one step closer to realising the company's business plan.

"We intend to take our company forward by leveraging on our strong track record and continue deepening our in-roads into our existing markets as well as opening up new markets," he added.

He believed that the company's strong foundation, technical expertise and experience would continue to deliver strong performance in the coming years.

Khoo said the company would also set up offices in Indonesia and Taiwan by the second half of 2019.

"We have substantial business operations in those countries. We foresee a huge potential for the expansion in Taiwan, primarily in the biotechnology and medical research and development (R&D) hub in Asia," he said.

He said Nova Pharma said the offices will help to increase awareness of the company's range of business.

As of January 15, Khoo said Nova Pharma has secured RM10.14 million order book to undertake pharmaceutical and biotechnology projects.

Nova Pharma also intends to further expand through the provision of turnkey projects to have better control of project implementation from pre-design to commissioning of the plants.

"We will take full responsibility for a project which is easier for our customers to manage and communicate with one provider," he said.

He pointed out the company will embark into this business area ideally between 2020 and 2022, while recruiting more skilled technical personnel to manage turnkey projects effectively

"This future plan will be financed through internally-generated funds or/and bank borrowings," he said.

Previously the company had completed two turnkey projects namely, Monoclonal Antibodies facility with modular approach in Nilai, Negeri Sembilan and R&D Herbal Laboratory in Shah Alam.

Nova Pharma is an engineering solutions company that involves in technical documentation, validation and project execution for pharmaceutical and biotechnology.

The listing raised a total of RM2.46 million and will be predominantly utilised for working capital of RM0.96 million, future expansion of RM0.50 million and estimated expenses of RM1.0 million.

The listing also excluded issue of 12.30 million new shares at an issue price of 20 sen represent 8.25 per cent of the enlarged issued shared capital of the company, were allotted to selected sophisticated investors.

Based on today's opening price of 24 sen and the enlarged issued share capital of 149 million shares, Nova Pharma's market capitalisation stood at RM35.76 million.