KUALA LUMPUR (July 21): ACE Market-bound logistics firm KGW Group Bhd said that its initial public offering (IPO) for the Malaysian public has been oversubscribed by 50.45 times.
In a press statement on Friday (July 21), the group said it has received a total of 11,329 applications for 1.24 billion shares with a value of RM260.81 million from the Malaysian public.
Meanwhile, the Bumiputera portion was also oversubscribed by 50.74 times following the receival of 6,868 applications for 624.49 million issue shares.
Under the other Malaysian public category, KGW received a total of 4,461 applications for 617.47 million new shares, representing an oversubscription rate of 50.16 times.
Additionally, the shares made available for application by eligible directors, employers and persons who have contributed to the success of the group have also been fully subscribed.
KGW managing director Datuk Roger Wong said the group is humbled by the overwhelming response from investors that are interested in its IPO.
“This further shows that we have gained positive recognition for our improving fundamentals, and with our bright prospects, we firmly believe that we can drive the group’s growth to the next level.
We look forward to unlocking more potential of the group in order to maximise value creation for our stakeholders. In addition, we are also proud to say that our existing investors had strong belief in the long-term prospects of the overall logistics industry,” he said.
KGW’s IPO comprises a public issue of 79.661 million new shares, including 24.14 million shares available the Malaysian public; 9.65 million shares for eligible directors, employees and persons who have contributed to the success of the group; 7.24 million shares by way of private placement to selected investors; and 38.62 million shares by way of private placement to Bumiputera investors.
Meanwhile, there are also 43.45 million shares being offered for sale by way of private placement to selected investors and Bumiputera investors.
The issuing house, Tricor Investor & Issuing House Services Sdn Bhd, said that the notices of allotment will be posted to all successful applicants on or before July 28, 2023.
TA Securities Holdings Bhd — the principal adviser, sponsor, underwriter and placement agent for this IPO — has confirmed that the 28.97 million shares by way of private placement to selected investors have been fully placed out.
Meanwhile, Eco Asia Capital Advisory Sdn Bhd — helmed by its managing director Kelvin Khoo Chee Siang — is the financial adviser for the listing exercise.
TA Securities head of corporate finance Ku Mun Fong observed that the response to KGW’s IPO is a reflection of investors’ appetite for a company with strong fundamentals, coupled with prospects for growth pivotal in the nation's economy building logistics industry.
“With its listing on the ACE Market of Bursa Securities, KGW is poised to ride on the prospects and growth in the logistics requirements in various different parts of the world, particularly in and out of Malaysia,” he said.
KGW is expected to float its shares on the ACE Market on Aug 1, 2023.
The group is principally involved in logistics services, as well as the warehousing and distribution of healthcare-related products and devices.
Under logistics services, KGW offers ocean and air freight services, as well as freight forwarding services. The group has a diversified customer base across the world, focusing primarily on Malaysia, the rest of Asia and North America.