KUALA LUMPUR (Feb 10): ES Sunlogy Bhd has attracted applications worth RM641.82 million from retail investors alone — more than ten times the amount that could be raised from the entire initial public offering (IPO).

Orders from individual public investors totalled 2.14 billion shares, which was more than 60 times the 35 million shares available for applications, according to a statement from Tricor Investor & Issuing House Services Sdn Bhd issued on behalf of ES Sunlogy.

Bumiputeras applied for 699.32 million shares, a little under 39 times the amount of shares available, while the non-Bumiputera portion recorded applications for 1.44 billion shares, representing an oversubscription rate of 81 times.

Shares set aside for eligible persons were also fully subscribed. Private placements of new and existing shares for select investors were also taken up.

Notices of allotment will be posted to all successful applicants on Feb 18, 2025. The mechanical and electrical engineering company is scheduled for listing on Feb 20.

Priced at 30 sen per share, the IPO values ES Sunlogy at a market capitalisation of RM210 million, with a price-to-earnings ratio of 15 times its trailing earnings. For the financial year ended July 31, 2024, the company reported a profit after tax of RM13.54 million on revenue of RM191.09 million.

ES Sunlogy specialises in high-tension and low-voltage electrical systems, extra-low-voltage systems, mechanical engineering for building services and solar energy generation through large-scale renewable projects.

The IPO, aiming to raise as much as RM63 million, will involve sale of 140 million new shares and an offer for sale of 70 million existing shares. The public issue is expected to raise gross proceeds of RM42 million while the offer for sale worth RM21 million will go to its selling shareholders.

The company has earmarked RM14.1 million of the IPO proceeds for the development and construction of the Selarong large scale solar photovoltaic plant that could generate up to 29.99 megawatts.

Another RM14 million will be allocated for partial repayment of bank borrowings, RM9.18 million for general working capital requirements and RM720,000 for the acquisition of enterprise resource planning software. Meanwhile, the remaining funds will cover listing expenses.

Proceeds from the offer for sale will accrue entirely to its group of shareholders, including ES Sunlogy managing director Khor Chuan Meng, executive director Chu Kerd Yee and shareholder Datuk Keh Chuan Seng. Post-IPO, Khor’s stake will dilute to 21%, while Chu's holdings will fall to 28% and Keh's to 21%.

M&A Securities Sdn Bhd is the principal adviser, sponsor, sole underwriter and placement agent for the IPO.

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