KUALA LUMPUR (April 8): Shares in SBH Marine Holdings Bhd rose 16% as the frozen seafood company made its ACE Market debut on Monday, following its RM50.6 million initial public offering (IPO).
SBH Marine closed at 25.5 sen versus its IPO price of 22 sen per share.
After opening at 25.5 sen, the counter traded between 24 sen and 27.5 sen. It was the day's second most actively traded stock on Bursa Malaysia, with 143.65 million shares traded. At the closing price, SBH is valued at RM226.4 million.
Demand from investors during the IPO was strong. The public tranche of the IPO was oversubscribed by 27.66 times, the company said in an exchange filing. The Bumiputera offering was oversubscribed by 20.05 times, while the remaining retail offering was oversubscribed by 35.26 times.
Meanwhile, both the 61 million new shares and 50 million existing shares offered to Bumiputeras were also fully taken up, as well as the 38 million issue shares to select investors.
The IPO involved 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 involved the sale of an about 26% stake, and would value the company at RM195.36 million.
The company raised RM39.6 million from the sale of the new shares, out of which RM16 million has been earmarked 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.
SBH Marine will also utilise RM7.1 million for working capital requirements, and the remaining RM4 million to defray estimated listing expenses.
The offer-for-sale tranche grossed 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 the deputy managing director.
KAF Investment Bank Bhd is the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO.