Saturday 23 Nov 2024
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KUALA LUMPUR (Oct 18): OB Holdings Bhd (KL:OBHB), slated for listing on the Ace Market of Bursa Malaysia on Oct 29, announced that the 19.58 million new shares it offered to the Malaysian public under its initial public offering (IPO) have been oversubscribed by 109.47 times.

The food and supplement maker’s IPO offered a total of 120 million new shares, with a large portion of 92.59 million done through private placements.

In a statement, the company said it received a total of 22,753 applications for 2.163 billion shares worth RM519.16 million from the Malaysian public.

For the allocation of about 9.79 million shares for the Bumiputera balloting portion, it received 11,375 applications for 969.26 million shares, representing an oversubscription rate of 97.99 times.

For the remaining public portion, it received 11,378 applications for 1.194 billion shares, which represents an oversubscription rate of 120.94 times.

Meanwhile, the 7.83 million shares made available for eligible directors, employees and persons who have contributed to the success of the company have also been fully subscribed, it added.

Its placement agents also confirmed they have fully placed out a total of 92.59 million shares, of which 48.95 million IPO shares were allocated for Bumiputera investors as approved by the Ministry of Investment, Trade and Industry (Miti), while 43.63 million shares were offered to selected investors.

Based on 120 million new shares issued, OB Holdings is expected to have raised some RM28.8 million from the IPO, which has been earmarked for repayment of bank borrowings and purchase of machines as well as working capital.

OB Holdings is scheduled to be listed on the ACE Market of Bursa Malaysia on Oct 29, with an estimated market capitalisation of RM94 million.

Edited ByKathy Fong
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