KUALA LUMPUR (Nov 7): Metro Healthcare Bhd (KL:MHCARE) announced that the 24.47 million shares available to the public in its initial public offering (IPO) was oversubscribed by 38.6 times.
The ACE Market-bound women healthcare service and fertility provider’s IPO offered a total of 156.63 million new shares, with a large portion of 122.36 million done through private placements.
The public portions are offered at 25 sen per share.
As part of its listing transfer from the LEAP Market, Metro Healthcare is scheduled to be listed on the ACE Market of Bursa Malaysia on Nov 15, with an estimated market capitalisation of RM244.7 million.
In a statement, the company said it received a total of 12,298 applications for 969.08 million shares, worth RM242.27 million, from the Malaysian public.
For the allocation of about 12.24 million shares for the Bumiputera balloting portion, it received 5,434 applications for 349.74 million shares, representing an oversubscription rate of 27.58 times.
For the remaining public portion, it received 6,864 applications for 619.34 million shares, which represents an oversubscription rate of 49.61 times.
Meanwhile, the 9.79 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 that they have fully placed out a total of 122.36 million IPO shares to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti).
Based on 156.63 million new shares issued, Metro Healthcare is expected to have raised some RM39.16 million from the IPO.
The group earmarked more than half of the IPO proceeds to be utilised for expanding its obstetrics and gynaecology business, and RM3 million has been set aside to refurbish and upgrade its premises.
The rest of the funds raised will cover working capital requirements and listing expenses.
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