KUALA LUMPUR (Dec 8): ACE Market-bound Jati Tinggi Group Bhd said its initial public offering (IPO) has been oversubscribed by 16.11 times by the Malaysian public.

In a statement Friday, the infrastructure utilities engineering services provider said it had received 5,195 applications for 335.37 million new shares, amounting to RM90.55 million.

Of that, 2,879 applications were for 145.12 million shares under the Bumiputera portion, representing an oversubscription rate of 13.81 times. The remaining 2,316 applications were for 190.25 million shares under the public category, indicating an oversubscription rate of 18.41 times.

Meanwhile, the 10 million shares it set aside for eligible directors and employees have also been fully subscribed, while 23.2 million shares it allocated for selected investors have been fully placed out.

Jati Tinggi's independent non-executive chairman Datuk Mohd Aminuddin Mohd Amin said the oversubscription proves the market's confidence in the group's business strategies and future growth.

"This level of investor enthusiasm fortifies our commitment to keep driving forward our future plans in the infrastructure utilities engineering industry. We are immensely grateful for this vote of confidence and are poised to leverage this momentum for sustained growth and enhanced stakeholder value," he said.

Jati Tinggi aims to raise RM18 million from its public issue of 66.8 million new shares, at an issue price of 27 sen per share.

TA Securities Holdings Berhad is the principal adviser, sponsor, underwriter, and placement agent for the IPO exercise.

Jati Tinggi is scheduled to be listed on the ACE Market of Bursa Malaysia on Dec 20, 2023.