KUALA LUMPUR (Dec 27): The initial public offering (IPO) of ACE Market-bound corrugated paper packaging products provider DS Sigma Holdings Bhd has been oversubscribed by 25.77 times.

In a statement on Tuesday (Dec 27), DS Sigma said it received a total of 13,031 applications seeking 642.58 million shares with a value of RM353.41 million, for the 24 million new shares it made available for the Malaysian public.

For the Bumiputera portion, a total of 7,778 applications for 300.04 million new shares were received, representing an oversubscription rate of 24 times. For the public portion, a total of 5,253 applications for 342.54 million new shares were received, representing an oversubscription rate of 27.54 times.

In addition, 9.8 million new shares made available for application by eligible directors, employees and persons who have contributed to the success of DS Sigma and its subsidiaries were fully subscribed.

"Further, the placement agent (Public Investment Bank Bhd) has confirmed that the 95.8 million shares made available for application by way of private placement have been fully placed out," the statement read.

DS Sigma managing director Lucille Teoh Soo Lien said the group is proud of the overwhelming responses from the public. "This serves as an indication that investors are confident in DS Sigma and its future prospects," said Teoh.

"The industrial demand for packing solutions remains intact and is stronger than ever and as such, we will build upon this momentum and grow DS Sigma," she added.

Tentatively slated for listing on Jan 6, 2023, DS Sigma plans to raise RM50.15 million from its IPO — which comprises the issuance of 91.18 million new shares at an issue price of 55 sen per share, and an offer for sale of 38.42 existing shares — to expand its manufacturing capabilities.

Public Investment Bank is also its principal adviser, sponsor, and sole underwriter for this IPO.