KUALA LUMPUR (Sept 11): In the latest sign of resurgent investor sentiment, JS Solar Holdings Bhd saw strong demand at its initial share sale with the public portion oversubscribed by more than 48 times.
JS Solar pulled in applications for over 800 million new shares worth RM248 million, according to a statement from the issuing house. The Bumiputera portion of the tranche was oversubscribed by 46 times while demand from non-Bumiputeras exceeded available shares by 50 times.
Shares set aside for eligible persons were also fully subscribed while the offering of new and existing shares to select investors through private placement were also fully taken up.
The strong interest for shares of JS Solar points to renewed investor confidence amid rising global markets on optimism for US interest rate cuts.
Express Powerr Solutions (M) Bhd, which rents out power generators, announced a day earlier that its initial public offering (IPO) received orders for 680 million shares worth nearly RM136 million, representing an oversubscription of 14 times.
The debut of JS Solar on the ACE Market will be on Sept 23 while Express Powerr is scheduled to list a day later, also on the ACE Market.
JS Solar, which installs solar panels, is planning to use proceeds from the IPO for the purchase and renovation of a new office, business expansion and marketing activities, bank borrowing, working capital as well as listing expenses. The company is also involved in operating and maintaining its client’s solar systems.
The IPO is expected to raise more than RM30 million, of which RM24.18 million will go to the company based in Shah Alam, Selangor. The remaining RM6.05 million raised from the sale of existing shares, meanwhile, will accrue entirely to managing director Chai Jeun Sian, non-executive director Ikwan Hafiz Jamaludin and his private vehicle Rantai Inspirasi, as well as substantial shareholder Sa Chee Peng.
TA Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO.