KUALA LUMPUR (Oct 28): Azam Jaya Bhd (KL:AZAMJAYA), a road infrastructure construction firm based in Sabah, announced that its initial public offering (IPO) was oversubscribed by 23 times for the 25 million new shares offered to the Malaysian public.

The company is scheduled to be listed on the Main Market of Bursa Malaysia on Nov 11. The IPO involved a total of 128.80 million shares, comprising 78.80 million new shares and an offer for sale of 50 million shares.

In a statement on Monday, Azam Jaya said it received 16,014 applications for 599.94 million shares worth RM467.96 million from the Malaysian public.

The 12.50 million shares allocated for Bumiputera investors were oversubscribed by 21.63 times, with 8,482 applications for 282.91 million shares. Meanwhile, the non-Bumiputera public category saw 7,532 applications for 317.04 million shares, reflecting an oversubscription rate of 24.36 times.

Azam Jaya noted that the notices of allotment will be posted to successful applicants on Nov 6.

The company aims to raise RM61.46 million from the issuance of 78.80 million new shares at 78 sen each, representing 15.76% of its enlarged share capital.

The offer-for-sale of 50 million shares is expected to generate RM39 million, which will go to the selling shareholders, including executive chairman Tan Sri Joseph Lo and managing director Datuk Jonathan Lo Chaw Loong.

Upon listing, Azam Jaya is projected to have a market capitalisation of RM390 million, based on the issue price of 78 sen per share and an enlarged share capital of 500 million shares.

Azam Jaya, through its subsidiaries, specialises in large-scale road infrastructure projects in Sabah, including roads, highways, bridges, flyovers and tunnels. The group has over 30 years of industry experience and has completed more than 50 construction projects across the region.

Inter-Pacific Securities Sdn Bhd is the principal adviser, sole underwriter and sole placement agent for this IPO.