KUALA LUMPUR (May 16): Oasis Home Holding Bhd is the latest initial public offering (IPO) to have received lukewarm investor interest, with an oversubscription rate of 0.55 times.
The omni-channel consumer lifestyle products marketer and seller received a total of 2,216 applications for 38.67 million new shares worth RM10.83 million from the Malaysian public, representing an oversubscription rate of just 0.55 times, according to a statement by Malaysian Issuing House Sdn Bhd on Friday.
Investor interest has been subdued following a string of weak IPO debuts on Bursa Malaysia amid global uncertainty spurred by US trade policy changes. As a result, Cuckoo International (MAL) Bhd has postponed its listing date to June 24 from April 30, while SPB Development Bhd has delayed the launch of its IPO to an unspecified date.
Oasis Home, scheduled for listing on the ACE Market of Bursa Malaysia on May 28, offered 150 million shares in total, comprising 100 million new shares and an offer for sale of 50 million shares.
All its private placements of both new and existing shares have been fully subscribed.
The Bumiputera portion was oversubscribed by 0.03 times, with 862 applications for 12.83 million shares received. The public portion saw 1,354 applications for 25.85 million shares, representing an oversubscription rate of 1.07 times.
Another 10 million new shares that were made available for application by eligible persons have also been fully taken up.
Meanwhile, the private placement of 62.5 million new shares to identified Bumiputera investors as well as 2.5 million new shares and 50 million existing shares to selected investors have also been fully placed out.
Oasis Home said the notices of allotment will be posted to all successful applicants on May 23.
The company is seeking to raise up to RM42 million from the issuance of 150 million new shares at 28 sen each, representing 20% of its enlarged share capital. Upon listing, Oasis Home is projected to have a market capitalisation of RM140 million.
The offer-for-sale is expected to generate RM14 million, which will go entirely to Oasis Home chief executive officer Datuk Teoh Yee Seang, the sole selling shareholder of those shares. Teoh's direct stake in the company will be diluted to 35% post-listing.
Oasis Home mainly sells kitchenware and household products ranging from pots to skincare, and from electric toothbrushes to supplements. More than 75% of its revenue comes from live commerce, where the company showcases its products during livestream sessions.
MIDF Amanah Investment Bank is the IPO’s adviser, sponsor, underwriter and placement agent.