KUALA LUMPUR (May 22): Signature Alliance Group Bhd received just enough applications from retail investors to cover the shares offered for its listing on the ACE Market of Bursa Malaysia.
Individual public investors applied for a total of 56.07 million new shares for 50 million new shares available for subscription under the initial public offering (IPO), Signature Alliance said in a statement. That translates into a subscription rate of 1.12 times or oversubscription of just 0.12 times.
There was enough demand for both Bumiputera and non-Bumiputera portions while shares set aside for eligible persons were subscribed. A private placement was also fully taken up.
Signature Alliance is scheduled to list on the ACE Market on June 5, 2025.
The company houses interior fit-out and renovation subsidiaries spun off from Signature International Bhd (KL:SIGN) mostly known for its kitchen cabinets. Chin Hin Group Bhd (KL:CHINHIN) controls Signature International with a 71.72% stake.
The IPO, priced at 62 sen apiece, raised RM161.2 million from issue of new shares. There is no sale of existing shares, meaning that its current shareholders are not cashing out during the IPO.
As investors turned increasingly selective at a time of market uncertainties, ACE Market IPOs have struggled with weakened demand. PEOPLElogy Bhd (KL:PEOPLE), listed on May 20, ended the streak of first-day flops on the ACE Market.
Before PEOPLElogy’s debut, however, all nine companies listed since March have ended their first day of trading underwater.
More than half of the proceeds have been earmarked for land acquisition and construction of a 50,000-square-feet production facility adjacent to its new headquarters in Selangor. Signature Alliance will also use part of the proceeds to expand its Penang office and open a new branch in Johor.
The rest will go towards repayment of bank loans for machinery and equipment, as working capital, and to cover listing expenses.
Upon listing, Signature Alliance is expected to have a market capitalisation of RM620 million.
M&A Securities is the adviser, sponsor, managing underwriter, joint underwriter and joint placement agent for the IPO. Affin Hwang Investment Bank is also an underwriter and placement agent.