KUALA LUMPUR (Nov 2): Plytec Holdings Bhd’s 30.3 million new shares involved in the public portion of its initial public offering (IPO) have been oversubscribed by 6.72 times.
The construction engineering solution provider said that the public portion had received 3,451 applications for 233.87 million shares.
This comprises 1,550 applications for 89.31 million shares for the Bumiputera portion, as well as another 1,901 applications totalling 144.55 million shares for the remaining shares to be issued by Plytec.
The Bumiputera portion saw an oversubscription rate of 4.89 times, compared with 8.54 times for the remaining portion.
Besides the public IPO portion, the group is also issuing 21.21 million shares to eligible directors and employees; 75.76 million shares under the private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti); and 30.3 million for private placement to selected investors.
These shares have been fully subscribed and placed out, it said.
Set to be listed on Nov 15, the ACE Market-bound group is expected to raise RM37.1 million through the IPO exercise, of which RM9 million will be allocated for the repayment of borrowings and RM8 million for its capital expenditure.
Meanwhile, another RM7.8 million will be utilised for the construction of factories and centralised labour accommodations on Plytec’s Olak Lempit land, which is expected to be completed by the 3Q2024.
The group will also allocate RM6.3 million for its working capital; RM4 million to cover estimated listing expenses and the remaining RM2 million is set aside to purchase software systems and hardware.
KAF Investment Bank Bhd is the principal adviser, sponsor, managing underwriter, joint underwriter and joint placement agent for the listing exercise.