KUALA LUMPUR (Dec 3): TMK Chemical Bhd's initial public offering (IPO) has attracted strong demand, with its new shares offered to the Malaysian public oversubscribed by 14.28 times.

In a statement on Tuesday, the chemical management and storage company said the retail portion of its IPO — under which 20 million shares were offered at RM1.75 apiece — received 14,739 applications for 305.55 million shares worth RM534.71 million.

Within this, the Bumiputera allocation was oversubscribed by 10.49 times, with 6,653 applications for 114.87 million shares. The non-Bumiputera portion received 8,086 applications for 190.68 million shares, representing an oversubscription rate of 18.07 times.

On its institutional offering, all 190 million shares priced at RM1.75 that were offered to institutional and selected investors were fully subscribed through a book-building process.

TMK's IPO comprises the issuance of 220 million new shares to raise some RM385 million, as part of its plan for the expansion of its plant, construction of new facilities and acquisition. The listing would offer investors up to 22% in the company. The IPO does not involve any offer for sales of shares.

The remaining 10 million IPO shares were set aside for pink form applications.

Notices of allotment for successful applicants will be issued on Dec 11. TMK Chemical, formerly known as Taiko Marketing Sdn Bhd, intends to leverage its listing on the Main Market of Bursa Malaysia to drive its growth and expansion.

Founded in 1989 by the youngest of the billionaire Lee brothers of plantation giant Kuala Lumpur Kepong (KL:KLK), the company is currently controlled by Datuk Lee Soon Hian. He resigned as an executive director of KLK in 2004, and bought his brother Datuk Lee Hau Hian's shares in 2006 to focus on TMK.

TMK provides sourcing, processing and distribution of acids, alkalis, salts and other chemical products. The company began manufacturing chlor-alkali derivatives, such as sodium hydroxide or caustic soda used in making of soap and detergents, at its Banting Plant 1 in May.

The company operates out of Malaysia, Singapore and Vietnam, and also provides bulk storage services for liquid chemicals at terminals in Pasir Gudang and Kemaman.

Maybank Investment Bank Bhd is the principal adviser, sole bookrunner, and sole underwriter for the IPO.