KUALA LUMPUR: Home-grown bakery product maker SDS Group Bhd, en route to be listed on the ACE Market of Bursa Malaysia on Oct 7, saw the public portion of its initial public offering (IPO) oversubscribed by 11.34 times.

In a statement yesterday, SDS Group, whose brands include Top Baker and Daily’s, said a total of 3,065 applications for 250.41 million new shares, valued at RM57.59 million, were received from the Malaysian public for 20.29 million new shares that were made available for public subscription.

“The 23.13 million new shares for eligible directors, employees and business associates/persons have also been fully subscribed,” it added.

Another 60.87 million new shares made available for application by way of private placement to selected investors have also been fully placed out.

“We are certainly encouraged by the response, which is a testimony to the public’s confidence in SDS Group’s business model,” said its managing director Tan Kim Seng.

“I am confident that SDS Group will grow stronger, better and more competitive and we will strive to ensure that we do not disappoint our shareholders and investors who [have] placed their trust in us,” he added.

Under the listing exercise, SDS Group has raised RM23.99 million from its public issue of 104.29 million new shares at 23 sen apiece.

Of the total IPO proceeds, RM6 million or 25% will be used to expand its business presence for both the wholesale and retail channels within the northern and central regions of Peninsular Malaysia respectively, with the additional capacity from its new manufacturing plant in Seremban.

It will further utilise RM7.79 million (32.5%) for working capital; RM7 million (29.2%) to repay bank borrowings and the remaining RM3.2 million (13.3%) to be used to defray listing expenses for the IPO.