KUALA LUMPUR (Dec 27): Industrial services firm Swift Energy Technology Bhd's initial public offering (IPO) was oversubscribed by 58.09 times for the 50.04 million new shares offered to the public, the issuing house said on Friday.
The Selangor-based company is scheduled to be listed on the ACE Market of Bursa Malaysia on Jan 8. The 50.04 million new shares were part of 250.20 million new shares under the IPO, in addition to the sale of 50.04 million existing shares via private placement to selected investors.
In a statement, Tricor Investor & Issuing House Services Sdn Bhd said it received 24,041 applications for 2.96 billion shares worth RM827.91 million from the Malaysian public for the 50.04 million shares issued at 28 sen per share.
The Bumiputera portion was oversubscribed by 49.99 times, with 12,048 applications for 1.28 billion shares received. The public portion saw 11,993 applications for 1.68 billion shares, representing an oversubscription rate of 66.19 times.
Another 50.04 million new shares were made available for application by eligible employees and persons who have contributed to the company’s success, which Tricor said have also been fully subscribed.
Meanwhile, the private placement of 125.10 million new shares to Bumiputera investors and 25.02 million new shares to selected investors have also been fully placed out, said the issuing house.
It said notices of allotment will be posted to all successful applicants on Jan 6.
Swift Energy is seeking to raise RM70.06 million from the issuance of the 250.20 million new shares at 28 sen each, representing 25% of its enlarged share capital.
The offer-for-sale of 50.04 million shares is expected to generate RM14.01 million, which will go to the selling shareholders of Blueprint Capital Sdn Bhd, a company mainly controlled by Swift Energy chief executive Tan Bin Chee and corporate affairs director Suzana Abu Bakar.
Upon listing, Swift Energy is projected to have a market capitalisation of RM280.22 million, based on the issue price of 28 sen per share and an enlarged share capital of more than one billion shares.
Swift Energy is mainly involved in industrial automation and power systems, specialising in process control, ex-solar photovoltaics, power distribution, and other systems for industries such as oil and gas, grain products, edible oils and food manufacturing.
The company has offices in Thailand, Singapore and China, serving about 550 customers across 29 geographical markets, covering the Asia-Pacific, Middle East, Africa and Europe. In FY2023, the company made a profit after tax of RM11.95 million.
M&A Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO.