KUALA LUMPUR (Nov 4): The initial public offering of Sabah-based Life Water Bhd, which is set to be listed on the Main Market of Bursa Malaysia on Nov 13, has attracted RM510.49 million worth of interest from retail investors, a little over eight times the RM63.42 million it was looking to raise from the issuance of new shares.
The public portion of its IPO, priced at 65 sen per share, was oversubscribed by 32.19 times, with 16,072 applications received seeking 785.38 million new shares over the 97.56 million shares it made available for the Malaysian public, Tricor Investor & Issuing House Services Sdn Bhd said in a statement issued on behalf of Life Water.
The applications received comprised 6,814 applications for 275.66 million new shares under the Bumiputera allocation, which represents an oversubscription rate of 22.3 times, and 9,258 applications for 509.72 new shares under the non-Bumiputera portion, which represents an oversubscription rate of 42.09 times.
The 14.2 million shares it had set aside for subscription by eligible persons who contributed to the company were also fully subscribed. So were the 59.15 million shares it made available for private placement to identified Bumiputera investors approved by the Ministry of Investment, Trade and Industry.
Also fully taken up were 560,000 new shares it wanted to place to selected investors, as well as the 28.39 million shares from its existing shareholders that were offered by placement.
Notices of allotment will be posted to all successful applicants on Nov 11, 2024, the statement read.
Life Water's IPO, which offers investors a 26.62% stake in the Sabah beverage maker, offered 125.95 million shares in total, comprising 97.56 million new shares to the public to raise RM63.42 million for the company, and the offer for sale of 28.39 million existing shares to raise RM18.45 million to the selling shareholders: Liaw Hen Kong, Chin Lee Ling, Tan Hwong Kuen and Lim Young Piau.
It plans to use proceeds from the sale to set up an additional drinking water manufacturing line at Sandakan Sibuga Plant 1 (RM19 million), to establish a new line at Sandakan Sibuga Plant 2 (RM12 million), to set up a second distribution centre in Sandakan (RM12.6 million), to expand its plastic packaging facilities in Kota Kinabalu (RM9.61 million), and for working capital (RM4.21 million). The remainder will be used to cover listing expenses.
MIDF Amanah Investment Bank Berhad is the principal adviser, underwriter, and placement agent for the IPO.