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KUALA LUMPUR (March 27): Frozen seafood company SBH Marine Holdings Bhd, which is en route to listing on the ACE Market of Bursa Malaysia on April 8, said its initial public offering (IPO) has been oversubscribed by 27.66 times.
In a bourse filing, SBH Marine said it had received a total of 10,071 applications for 1.29 billion new shares made available for the public, representing an overall oversubscription rate of 27.66 times.
Of this, 5,207 applications for 473.72 million shares were received for the Bumiputera portion, representing an oversubscription rate of 20.05 times.
For the remaining public portion, a total of 4,864 applications for 815.75 million shares were received, representing an oversubscription rate of 35.26 times.
Meanwhile, SBH Marine said it has fully placed out the 61 million issue shares and 50 million offer shares made available by way of private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti), as well as the 38 million issue shares made available by way of private placement to selected investors.
The IPO involves a public issue of 180 million new ordinary shares and an offer for sale of 50 million existing ordinary shares. All in all, the IPO involves the sale of an about 26% stake, and would value the company at RM195.36 million.
At an IPO price of 22 sen each, it would raise gross proceeds of RM50.6 million, of which RM39.6 million is from the sale of the new shares.
Of the RM39.6 million, the company has earmarked RM16 million to develop its Selinsing farm, RM6.5 million to construct a new seafood processing plant, and another RM6.1 million to buy equipment and motor vehicles.
It will utilise RM7.1 million for working capital requirements and the remaining RM4 million to defray estimated listing expenses.
The offer-for-sale tranche, meanwhile, allocates 50 million shares to Bumiputera investors, which will raise RM11 million, and proceeds will go entirely to the selling shareholders, including group managing director Tan Boo Nam and his son Tan Yuak Ming, who is deputy managing director.
KAF Investment Bank Bhd is the principal adviser, sponsor, sole underwriter and sole placement agent for this IPO.