KUALA LUMPUR (Sept 27): ACE Market-bound KHPT Holdings Bhd (KL:KHB) announced that the 20.12 million shares made available to the Malaysian public in its initial public offering (IPO) have been oversubscribed by 124.13 times.
The automotive parts and components manufacturer received 28,532 applications for a total of 2.52 billion shares from the Malaysian public.
Meanwhile, 13,284 applications for 1.03 billion shares were received for the Bumiputera portion, representing an oversubscription rate of 101.76 times.
Another 15,248 applications for 1.48 billion shares were received for the other Malaysian public portion, reflecting an oversubscription rate of 146.50 times.
Additionally, the 10.06 million shares made available for application by eligible directors and employees of the group have been fully subscribed, according to KHPT.
KAF Investment Bank Bhd, as the principal adviser, sponsor, underwriter and placement agent for the IPO exercise, has confirmed that the 78.47 million shares and 38.23 million offer shares made available for application via private placement have been fully placed out.
The notices of allotment will be mailed to all successful applicants by Oct 7.
KHPT’s IPO involves a public issue of 108.64 million shares and an offer for sale of 38.23 million shares, which would raise up to RM29.38 million.
In total, the listing offers investors a 27% stake in the Selangor-based company.
Under the public issuance, 20.12 million new shares are allocated to the Malaysian public, while 10.06 million shares are earmarked for eligible persons. The group will also sell 78.47 million shares to approved selected investors through a private placement.
At the IPO price of 20 sen per share, KHPT will have a market capitalisation of about RM80.48 million upon its listing scheduled for Oct 8. It would be valued at 14.45 times the earnings per share of 1.38 sen for the financial year ended Dec 31, 2023 (FY2023).
KHPT mainly manufactures and sells automotive parts and components in Malaysia, catering to Proton and Perodua vehicles for more than 20 years. The products include body parts, seats structures and other parts like customised engine components and absorber parts sold to Proton and Perodua directly or through their respective Tier 1 manufacturers.