KUALA LUMPUR (Oct 30): The initial public offering (IPO) of security seals manufacturer Mega Fortris Bhd, involving 42.25 million shares offered to the Malaysian public, has been oversubscribed by 7.18 times.

The IPO drew 9,263 applications for 345.76 million shares worth RM231.66 million.

Scheduled to list on the Main Market of Bursa Malaysia on Nov 11, the IPO features a total of 295.74 million shares, consisting of 147.87 million new shares and a corresponding offer-for-sale of 147.87 million existing shares.

Mega Fortris aims to raise RM99.07 million from the new shares issued at 67 sen each. Likewise, the offer-for-sale will generate RM99.07 million for selling shareholders, including the company’s chairman Datuk Nick Ng and CEO Datuk Adrian Ng.

For the Bumiputera portion, a total of 2,330 applications for 75.55 million issue shares were received, which represents an oversubscription rate of 2.58 times.

As for the non-Bumiputera portion, a total of 6,933 applications for 270.21 issue shares were received, which translates into an oversubscription rate of 11.79 times.

Notices of allotment will be sent to successful applicants by Nov 7.

Based on the IPO issue price of 67 sen per share, Mega Fortris is poised to enter the market with an estimated market capitalisation of RM566.13 million, supported by an enlarged share base of 844.97 million shares.

This listing offers investors up to a 35% stake in the company, which counts Singapore’s Oversea-Chinese Banking Corporation (OCBC) as a backer.

OCBC holds a 9.45% stake in the company’s holding entity, Mega Fortris Global Pte Ltd, while an additional 16.54% is held indirectly via Lion-OCBC Capital Asia I Holding Pte Ltd. The latter serves solely as an investment vehicle, with no role in Mega Fortris’s day-to-day operations.

Mega Fortris manufactures an estimated 530 million pieces of security seals annually, supplying tamper-evident products to sectors requiring high-security standards, from logistics to casinos. Its client portfolio includes 38 casino operators across Asia, including in Macau, the Philippines, Vietnam and Cambodia.

RHB Investment Bank Bhd is the sole principal adviser, joint underwriter and joint placement agent for the IPO, whereas AmInvestment Bank Bhd is the joint underwriter and joint placement agent for the listing exercise.