Mercury Securities’ IPO oversubscribed by 45 times

Wednesday 03 Jul 2024

KUALA LUMPUR (Sept 8): Mercury Securities Group Bhd said its shares offered to the public under its initial public offering (IPO) has been oversubscribed by 45.45 times.

A total of 12,926 applications for 2.07 billion new shares with a value of RM518.53 million were received from the Malaysian public, said the stockbroking and corporate finance advisory firm in a statement on Friday.

For the public portion, 7,957 applications for 1.51 billion shares were received, which represents an oversubscription rate of 66.56 times.

Meanwhile, for the Bumiputera public portion, 4,969 applications for 565.77 million shares were received, representing an oversubscription rate of 24.34 times.

Mercury Securities said the 22.33 million shares made available for application by directors, employees and those who have contributed to its success, were fully subscribed.

It added that 45.47 million new shares made available for application by way of private placement to selected investors, as well as 44.65 million new shares made available for application by way of private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti), have been fully placed out.

Mercury Securities’ IPO comprised a public issue of 157.1 million new shares (17.59% of the enlarged issued shares of the company) and an offer for sale of 71.51 million existing shares (8.01% of the enlarged issued shares), at an offer price of 25 sen per share.

The public issue was expected to raise RM39.27 million.

Upon its listing on the ACE Market of Bursa Securities on Sept 19, Mercury Securities said it would have a market capitalisation of RM223.25 million, based on the IPO price and an enlarged issued share capital of 893 million shares.

Public Investment Bank Bhd is the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO exercise.

Edited ByS Kanagaraju

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