KUALA LUMPUR (Dec 6): Aluminium products manufacturer Winstar Capital Bhd's initial public offering (IPO) has attracted RM413 million worth of interest from retail investors, nearly 21 times the RM19.79 million that it was looking to raise from the issuance of new shares via its listing.
In a statement on the group's behalf, Malaysian Issuing House Sdn Bhd said the 14.5 million shares that Winstar made available to the Malaysian public under its IPO, priced at 35 sen per share, was oversubscribed by 80.17 times, as it received 19,881 applications for 1.18 billion shares.
The 19,881 applications comprised 9,849 applications for 502.41 million IPO shares received for the Bumiputera portion, representing an oversubscription of 68.3 times, and 10,032 applications for 674.5 million shares for the non-Bumiputera portion, representing an oversubscription of 92.03 times.
Slated to be listed on Dec 19, the group's IPO involves a total offering of 73.95 million shares, comprising 56.55 million new shares and an offer for sale of 17.4 million shares. Aside from the 14.5 million public portion, the 15.95 million shares it set aside for pink form applications have been fully taken up. The biggest portion — 43.5 million shares allocated for placement to selected investors — has also been fully subscribed.
Notices of allotment will be mailed to all successful applicants by Dec 18.
Winstar is backed by renewable energy firm Sunview Group Bhd (KL:SUNVIEW), which holds a 30% stake through its wholly owned subsidiary, Vafe System Sdn Bhd. Following the IPO, Sunview’s stake in Winstar will be diluted to 24.15%.
At the IPO price of 35 sen per share, Winstar Capital is expected to have a market capitalisation of RM101.5 million upon listing, based on its enlarged share capital of 290 million shares. This values the company at a price-to-earnings (P/E) ratio of 12 times its financial year ended Dec 31, 2023 (FY2023) earnings.
The group aims to raise up RM19.79 million from the issuance of new shares to the public, which will primarily be used for expansion, including the purchase of new machinery and equipment. The IPO's offer for sale is expected to raise RM6.09 million for its selling shareholders, including Winstar executive vice chairman Chua Nyok Chong and chief executive officer Chua Boon Hong.
TA Securities Holdings Bhd is the principal adviser, sponsor, sole placement agent, and sole underwriter for the IPO exercise, while Eco Asia Capital Advisory Sdn Bhd is the financial adviser.