KUALA LUMPUR (June 11): Agricore CS Holdings Sdn Bhd (KL:AGRICOR) said investors have snapped up the 51.7 million shares it made available to the public for its initial public offering (IPO) at 50 sen per share.

The ACE-Market-bound food ingredient supplier’s IPO involves 25.5% of its enlarged share capital.

The company received a total of 15,304 applications for 1.34 billion shares with a value of RM669.2 million from the Malaysian public, which represents an overall oversubscription rate of 130.99 times.

The applications comprised 8,594 Bumiputera applications for 580.9 million shares, which represents an oversubscription rate of 113.57 times; and 6,710 non-Bumiputera applications for 757.5 million shares, which represents an oversubscription rate of 148.42 times.

Meanwhile, 10.14 million shares made available for application by eligible directors, employees and persons who have contributed to the success of the group have also been fully subscribed.

Further, 25.35 million shares that the group set aside for placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry have also been placed out. The same goes for the 6.08 million shares made available for placement to selected investors.

Agricore is expected to raise RM25.86 million from the IPO, of which about 83% of the proceeds, or RM21.58 million, have been earmarked to purchase inventory and to set up a regional storage facility in Klang, Selangor, to expand its business. The rest of the proceeds will be used to recruit staff and to defray listing expenses.

Agricore is scheduled to be listed on the ACE Market on June 21, with an estimated market capitalisation of RM101.40 million.