KUALA LUMPUR (May 18): Cloudpoint Technology Bhd, which is en-route to Bursa Malaysia's ACE Market, announced that its initial price offering (IPO) was oversubscribed by 112.94 times by the Malaysian public.
In a press statement, Tricor Investor & Issuing House Services Sdn Bhd (TIIH), representing Cloudpoint, said that a total of 36,608 applications for 3.03 billion new shares with a value of RM1.15 billion were received from the Malaysian public. The IPO price currently stands at 38 sen per share.
For the Bumiputera portion, a total of 20,448 applications for 1.35 billion new shares were received, representing an oversubscription rate of 100.74 times.
Whereas for the public portion, a total of 16,160 applications for 1.68 billion new shares were received, which represents an oversubscription rate of 125.14 times.
The 13.29 million shares that were available to eligible directors and employees have also been fully subscribed.
Meanwhile, TIIH said the private placement of 66.45 million new shares to Bumiputera investors was approved by the Ministry of International Trade and Industry (Miti) and 53.16 million existing shares to selected investors have been fully placed out.
Cloudpoint is an information technology (IT) solutions provider in enterprise and data centre networking, cybersecurity, cloud services and software application solutions.
The issue price of 38 sen per share is valued at the price-earnings multiple of approximately 15.38 times based on its earnings per share (EPS) of 2.47 sen for the financial year ended Dec 31, 2022 (FY2022). The EPS is calculated based on the company’s net profit of RM13.15 million and enlarged share capital of 531.6 million, according to the company’s IPO prospectus.
Cloudpoint reported a revenue of RM90.6 million in FY2022, a big jump from RM59.54 million in FY2021, RM51.23 in FY2020, and RM50.63 in FY2019.
The company posted profit after tax (PAT) of RM13.15 million in FY2022, up 28.4% against RM10.24 million in FY2021. Its PAT stood at RM8.34 million in FY2020 and RM6.53 million in FY2019.
Under the listing exercise, Cloudpoint aims to raise approximately RM40.4 million from its IPO of 159.48 million shares, including 53.16 existing shares, at an issue price of 38 sen per share.
Of the IPO raised, RM13.3 million has been earmarked for business expansion while RM15.8 million will go towards working capital, RM7.8 million for office relocation and the remaining RM3.5 million for listing expenses.
M&A Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for this IPO.
The notices of allotment will be mailed to all successful applicants on or before May 25, 2023, according to TIIH.