IPO Series - VANZO Holdings Berhad - 1st Bursa Air Fragrance / Perfume Maker Stock

Figure 1: IPO timetable of VANZO Holdings Berhad
-Will be listed on the ACE Board

Info of IPO
Enlarged no. of shares upon listing:  466.7511 million
IPO price: RM0.15
Market capitalization: RM70 million
Estimated funds to raise from Public Issue:  RM14.0 million
PE ratio = 13.72x (based on FY2023)
 

Figure 2: Business model of VANZO Holdings Berhad
Source: VANZO Holdings Berhad IPO prospectus

Figure 3: Utilization of proceeds of VANZO Holdings Berhad
Source: VANZO Holdings Berhad IPO prospectus

Dividend Policy
-The group does not have any formal dividend policy

Figure 5: Major customers and suppliers of VANZO Holdings Berhad in FPE2024
Source: VANZO Holdings Berhad IPO prospectus
 

Figure 6: Profit & Loss statement of VANZO Holdings Berhad

Figure 7: Financial position of VANZO Holdings Berhad

Figure 8: Market share of the air fragrance industry in Malaysia

Source: VANZO Holdings Berhad IPO prospectus

Figure 9: Industry players from local and international

Source: VANZO Holdings Berhad IPO prospectus

Financial overview, industry market, and personal opinion
-From the provided profit and loss statement between FY2021 to FY2023, the PAT has grown exponentially from RM3.04 million to RM5.10 million, or translated to a CAGR of 29.52%. However, the company's trade receivables projected the same trend as the PAT, rising from RM736k to RM8.268 million, which might be a potential risk to the company’s financial health.
-According to the independent market research report, the air fragrance industry size in Malaysia had projected a CAGR of 10.7% from 2021 to 2023, and the subsequent years (2024 – 2026) are anticipated to have 9.0% due to several reasons, for instance, growing vehicle ownership, rising disposable income, etc.
-The growth of PAT has reduced the PE ratio of the company by almost 60 – 70%. Thus, by combining its issued price and market capitalization, it might have a certain rise during the listing day.

Disclaimer: The above content is not an investment advisory service and does not purport to tell or suggest which securities or stocks customers should buy or sell for themselves. It should not be assumed that the methods, techniques, or indicators presented above will be profitable or will not result in losses. You should not rely solely on information when making any investment. Rather, you should use the information only as a starting point for doing additional independent research to allow you to form your own opinion regarding investments.
 

By: Jshen Ng