KUALA LUMPUR (April 8): Surface decorative products company Topmix Bhd said on Monday investors snapped up its RM31.74 million initial public offering shares ahead of its listing on the ACE Market.

Demand totalled 1.17 billion shares worth RM363.9 million for 19.69 million shares available to the Malaysian public, an oversubscription of 58.61 times, the company said in a statement. The Bumiputera portion was oversubscribed 51.86 times while the other public category was oversubscribed 65.26 times.

Shares set aside for eligible persons were fully subscribed while shares offered through private placement to Bumiputera investors and select investors were fully taken up. The existing shares on offer to select investors were also placed out.

“We appreciate the favourable response to our IPO,” said managing director Teo Quek Siang. “This reinforces our commitment to delivering value to shareholders as we pursue growth opportunities in the surface decorative products industry.”

The listing is set for April 23.

The IPO, priced at 31 sen apiece, comprises a public issuance of 82.7 million new ordinary shares that raised RM25.6 million, as well as an offer for sale of 19.7 million existing shares.

The company plans to use RM11.3 million, or 44.2% of the total proceeds, for general working capital and 23.3% for business expansion. Topmix also allocated 20.8% to expand into the assembly of melamine-faced chipboard products while the remaining 11.7% will be used to defray listing expenses.

The offer-for-sale meanwhile raised RM6.10 million, which will accrue entirely to selling shareholders Teo and executive director Tan Lee Hong.

M&A Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO.