KUALA LUMPUR (May 30): Edelteq Holdings Bhd said the Malaysian public's portion of its initial public offering (IPO) shares was oversubscribed by 152.03 times at an issue price of 24 sen per share.
The company’s listing exercise offered 143.2 million shares, of which a large bulk of the shares was sold via private placement.
Edelteq’s IPO entailed a public issue of 100 million new shares, representing 18.8% of the enlarged share capital, raising RM24 million in fresh equity.
On top of that, there was an offer for sale of 43.2 million existing shares by way of private placement to selected investors.
Shares of Edelteq, an engineering support provider for integrated circuit (IC) assembly and test processes in the semiconductor industry, were valued at price-earnings-ratio of 23.53 times based on earnings per share of 1.02 sen.
The company is expected to make its debut on Bursa Malaysia’s ACE Market next Wednesday (June 7).
In a statement, Edelteq said it had received a total of 35,292 applications for 4.07 billion shares with a value of approximately RM978 million for the 26.63 million shares allocated to the Malaysian public, representing an oversubscription rate of 152.03 times.
For the Bumiputera category, there were a total of 18,649 applications received for 1.48 billion shares, translating into an oversubscription rate of 110.41 times, given 13.31 million shares offered for this category.
As for the other Malaysian public category, 16,643 applications were received for 2.59 billion shares, representing an oversubscription rate of 193.65 times, based on 13.31 million shares made available.
Upon listing, Edelteq will have a market capitalisation of approximately RM127.8 million based on its issue price of 24 sen per share and the enlarged share capital of 532.53 million shares.
Edelteq executive director and group chief executive officer Chin Yong Keong said in the statement that the oversubscription reflects the public’s confidence in the fundamentals and prospects of Edelteq.
"With the IPO funds in place, we are well-positioned to implement our expansion plans and capitalise on the growth opportunities in the semiconductor industry.”
"The ten million shares available for application by eligible employees, as well as persons who have contributed to the success of Edelteq have been fully subscribed," it said.
Meanwhile, the private placement of 63.37 million shares available to selected investors has also been completely placed out. It said that the notices of allotment will be posted to all successful applicants by June 6.
"Moreover, we see significant potential in emerging trends like the Internet of Things (IOT) and 5G technology, which will sustain long-term demand for semiconductors," he said.
Ching noted that Edelteq remains dedicated to delivering cost-effective solutions and developing innovative products.
"We are making strategic investments in new machines, skilled personnel, and the new Batu Kawan factory to meet growing demand and orders. By leveraging on our technical expertise, we aim to maintain our competitive edge in this evolving industry,” he added.
UOB Kay Hian Securities (M) Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.