This article first appeared in The Edge Financial Daily, on September 28, 2016.

KUALA LUMPUR: Perak Transit Bhd, which plans to list its shares on Bursa Malaysia’s ACE Market on Oct 6, saw its initial public offering (IPO) oversubscribed by 19.83 times.

The public transportation services provider said it received 10,346 applications for 1.21 billion shares, with a value of RM181.22 million, from the public. Fifty-eight million shares were made available for public subscription.

In a statement yesterday, the company said that for the bumiputera portion, 6,306 applications for 663.82 million shares were received, representing an oversubscription rate of 21.89 times.

For the public portion, 4,040 applications for 544.34 million shares were received, representing an oversubscription rate of 17.77 times.

Perak Transit intends to raise RM36.75 million through its IPO, which involves the issuance of 245 million shares, of which 58 million will be offered to the public, and 187 million for selected investors.

About 54.42% of the proceeds will be allocated to partially finance the construction of an integrated bus terminal in Kampar at a cost of RM128.33 million, said the company.

Of the remaining proceeds, 28.52% will be used for working capital purposes, 11.32% to defray listing expenses and 5.74% for the repayment of hire purchase facilities to several financial institutions, it added.