KUALA LUMPUR (Sept 15): Evergreen Max Cash Capital Bhd (EMCC), an ACE Market-bound pawn broking services provider that is also involved in the trading of gold and luxury products, announced on Friday that its initial public offering (IPO) has been oversubscribed by 53.06 times by the Malaysian public.

This is from the 14,568 applications it received for 3.01 billion shares worth RM722.66 million from the Malaysian public, it said in a statement.

Of that, 4,596 applications for 656.83 million shares were received for the Bumiputera portion, representing an oversubscription rate of 22.58 times.

The non-Bumiputera public portion, meanwhile, was oversubscribed by 83.53 times, with 9,972 applications for 2.35 billion shares.

Its pink form allocation — comprising 27.9 million new shares it made available for application by its eligible directors, employees as well as persons who have contributed to the success of the company, have also been fully subscribed.

Its placement of 44.6 million new shares to selected investors, together with the 139.4 million new shares to Bumiputera investors approved by the Ministry of Investment, Trade, and Industry, have also been fully placed out.

Besides the public issue of a total of 267.6 million new shares, its IPO also involves an offer for sale of 43 million existing shares — which have also been fully taken up.

Established in 2012, EMCC is principally involved in the pawnbroking business via its network of 22 “Pajaking” pawnshops in Kuala Lumpur, Selangor, Negeri Sembilan and Pahang.

To complement its pawnbroking business, the group is also involved in retail and trading of gold and luxury products, while offering pawnbroking consultancy and IT solutions services to third-party pawnbrokers who are “not in direct competition with Pajaking pawnshops”.

The group, scheduled to be listed on the ACE Market on Sept 26, is raising approximately RM64.2 million, with a large portion of the IPO proceeds to be utilised as cash capital for its pawnbroking business and to open new “Pajaking” pawnshops.

Upon listing, EMCC will have a market capitalisation of RM267.6 million based on the IPO price of 24 sen per share and its enlarged share capital of 1.11 billion shares.

Mercury Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.