KUALA LUMPUR (March 28): SumiSaujana Group Bhd's initial public offering (IPO) was oversubscribed 1.85 times by retail investors ahead of its listing on the ACE Market.

Demand for the specialty chemicals manufacturer totalled 206.64 million shares for 72.5 million shares available, according to the issuing house. The Bumiputera portion was oversubscribed by 1.23 times while the remaining shares were oversubscribed by 2.47 times by the public.

Shares allocated to eligible persons were also fully subscribed, while new shares for institutional or select investors through private placement were also fully taken up, the issuing house said.

Offering of both new and existing shares to Bumiputeras through private placement was also fully bought up after applying the relevant clawback and reallocation provisions as set out in SumiSaujana's prospectus dated March 13, 2025.

Notices of allotment will be posted to all successful applicants on April 7. SumiSaujana is slated for listing on April 9 at 24 sen per share.

The IPO aims to raise about RM74.4 million from the public issuance of 310 million new shares at 24 sen each.

An offer for sale will see 90 million existing shares opened up for sale to the public as well. The listing offers up to a 27.71% stake in the company.

SumiSaujana is mainly involved in the manufacturing of oil-and-gas specialty chemicals, trading of specialty and industrial chemicals, and provision of technical-related support services. At an IPO price of 24 sen per share, SumiSaujana would have a market capitalisation of RM346.5 million, valuing the company at 11 times its trailing earnings.

The company has earmarked 54.03% of the proceeds for the acquisition of a new warehouse and corporate office in Puncak Alam, 25.40% for the acquisition of its existing factory, also in Puncak Alam, 2.8% for capital expenditure, 10.24% for expansion of research and development and the balance for the estimated listing expense.

The company’s manufacturing facilities include three reactors with a total annual capacity of 10,700 tonnes and one hybrid blend-reactor tank with an annual capacity of 4,900 tonnes, supported by six blend tanks with a total annual capacity of 19,500 tonnes.

The offer for sale raised RM21.6 million, which will accrue entirely to SumiSaujana's chief executive officer Norazlam Norbi, executive deputy chairman Toh Chee Seng, chief operating officer Ramli Mohamad, as well as Atreon Holdings Sdn Bhd, which is held by the trio.

RHB Investment Bank is the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO.