KUALA LUMPUR (Sept 25): Utilities engineering services firm Cheeding Holdings Bhd saw strong demand from investors with its public issue of new shares ahead of its listing on the ACE Market of Bursa Malaysia.
The company received applications for 1.67 billion shares, worth about RM600.86 million, from the Malaysian public, which represents an oversubscription rate of 40.87 times, according to a statement on Thursday.
The Bumiputera portion was oversubscribed by 26.2 times, while orders from the public portion were 55.54 times above the shares available for subscription. Shares set aside for eligible persons were also fully subscribed.
Private placements to selected investors and Bumiputera investors approved by the Ministry of Investment, Trade and Industry were fully placed out.
Cheeding mainly provides engineering, procurement, construction and commissioning of overhead and underground infrastructure for utilities.
The initial public offering (IPO) aims to raise RM75 million, of which over RM51 million will accrue to Cheeding, while the rest will go to managing director Ng Kian Chai and his spouse Tan Sook Hoi, who put their existing shares for sale.
At an IPO price of 36 sen per share, Cheeding is estimated to have a market capitalisation of about RM287 million upon listing.
TA Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO.