KUALA LUMPUR (June 23): ASM Automation Group Bhd, which is slated for listing on the ACE Market of Bursa Malaysia on July 2, said the 26.74 million new shares it offered to the public under its initial public offering (IPO) have been oversubscribed by 1.27 times.
The company, which supplies automation systems to the food and beverage manufacturing industry, offered 181.82 million shares in total under the IPO, including 128.34 million new shares and an offer for sale of 53.48 million shares.
The company on Monday said it received a total of 2,427 applications for 60.77 million shares from Malaysians eyeing the public portion.
For the Bumiputera portion, 1,056 applications were received for 22.37 million shares, representing an oversubscription rate of 0.67 times, the company said in a statement.
As for the other public category, 1,371 applications were received for 38.40 million shares, representing an oversubscription rate of 1.87 times.
Another 10.70 million new shares that were made available for application by eligible persons have also been fully taken up.
Meanwhile, the private placement of 66.85 million new shares to identified Bumiputera investors as well as 24.06 million new shares and 53.48 million existing shares to selected investors have also been fully placed out.
ASM said the notices of allotment will be posted to all successful applicants on July 1.
The company sought to raise up to RM21.82 million from the issuance of 128.34 million new shares at 17 sen each, representing 24% of its enlarged share capital, to acquire land for a new factory, purchase new machinery and expand its working capital. Upon listing, ASM is projected to have a market capitalisation of RM90.91 million.
The offer-for-sale is expected to generate RM9.09 million, which will go entirely to ASM managing director Chan Kok Heng and executive director Leong Weng Khin. Post-listing, Chan’s stakes will be diluted to 50.9% (from a 77.5% stake) and Leong's stake will stand at 15.1% (from 22.5%).
ASM offers front-of-line processing and end-of-line packaging automation systems. Its services include machine modification and upgrades, maintenance support and the supply of components and spare parts.
M&A Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO, while Eco Asia Capital Advisory Sdn Bhd serves as the financial adviser.