KUALA LUMPUR (April 8): ACE Market-bound MSB Global Group Bhd announced on Tuesday that the 30.5 million new shares offered to the Malaysian public under its initial public offering (IPO) at 20 sen apiece were oversubscribed by 6.46 times.

The aftermarket automotive parts and components distributor received 4,849 applications for over 227.42 million shares from the Malaysian public, worth RM45.48 million, according to a statement from Vistra Group, issued on behalf of MSB Global.

Of that, 2,129 applications were for 60.74 million shares under the Bumiputera portion, resulting in an oversubscription of 2.98 times. The balance 2,720 applications were for 166.67 million shares under the public portion, representing an oversubscription of 9.93 times.

Other than the 30.5 million new shares, the IPO's public issue includes an allocation of 6.1 million shares to eligible persons, which have been fully subscribed.

Also included were the placement of 76.25 million shares to Bumiputera investors approved by the Ministry of Investment, Trade and Industry, and 20.15 million shares to select investors, both of which were also fully taken up.

An offer for sale of 74 million existing shares by its selling shareholders were also fully taken up.

The notices of allotment will be mailed to all successful applicants on April 14.

MSB Global’s IPO, involving the public issuance of 133 million new shares and the offer for sale of 74 million existing shares, offers investors a 21.8% stake in the company.

Slated for listing on April 15, MBS Global aims to raise RM41.4 million from the initial public offering (IPO).

The group plans to use the listing proceeds to buy new machinery and equipment, build a new factory and warehouse, repay its bank borrowings, set up a new in-house electric vehicle charger, and for general working capital.

Proceeds from the offer for sale, expected to raise as much as RM14.8 million, will go to its managing director Datuk Ow Kee Foo, executive director Lai Swee Ping, and Lee Li Lian, the wife of a director in one of MSB Global’s subsidiaries.

MSB Global is the exclusive distributor of GSP-branded automotive parts and components in Malaysia, including driveshafts, wheel hub assemblies, suspension parts and steering racks.

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

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