KUALA LUMPUR (July 10): Enproserve Group Bhd (KL:ENPRO), slated for listing on the ACE Market of Bursa Malaysia on July 18, said the 52.5 million new shares it offered to the Malaysian public under its initial public offering (IPO) have been oversubscribed by 0.43 times.
The shares were part of the 315 million shares offered under its IPO, comprising 210 million new shares and an offer for sale of 105 million existing shares at 24 sen each.
Enproserve is a Terengganu-based mechanical and engineering services provider to the oil and gas and petrochemical sectors. It specialises in plant maintenance and turnaround services, engineering, procurement, construction and commissioning (EPCC), and facility management.
In a statement, Enproserve said it received 1,414 applications from the Malaysian public for 74.96 million shares, valued at RM17.99 million.
The Bumiputera portion received 705 applications for 40.57 million shares, resulting in an oversubscription rate of 0.55 times. For the non-Bumiputera portion, 709 applications for 34.39 million shares were received, which equates to an oversubscription rate of 0.31 times.
Another 18.32 million new shares that were made available for application by eligible persons have also been fully taken up, said Enproserve.
It also confirmed that the private placement of 139.18 million new shares and the offer for sale of 105 million shares to selected investors have been fully placed out.
The IPO is expected to raise RM50.4 million, of which about 47% or RM23.68 million will be allocated towards capital and operational expenditure to expand Enproserve’s capacity and capabilities, including the acquisition of heavy lifting equipment for internal use and rental purposes. Of the balance, RM11.65 million will be used to repay bank borrowings, while RM10.05 million has been earmarked for working capital.
Meanwhile, the 105 million existing shares offered for sale is expected to generate RM25.2 million, which will all go to Enproserve’s managing director Azman Yusof. Upon listing, he will retain a 70% equity stake in the company, valued at about RM252 million.
Enproserve currently has 19 active contracts for plant maintenance and turnaround services across Johor, Melaka, Terengganu, and Pahang. These contracts are expected to sustain the company’s operations until 2029, with certain agreements offering extension options.
KAF Investment Bank is the principal adviser, sponsor, sole placement agent and sole underwriter for Enproserve's IPO.