KUALA LUMPUR (Nov 10): PMW International Bhd saw strong appetite from investors for its public issue of new shares ahead of its listing on the ACE Market.
Shares of the Perak-based concrete products maker were oversubscribed by 31.7 times, with demand totalling 1.46 billion shares for 44.6 million new shares available, according to a notice from KAF Investment Bank Bhd. The Bumiputera portion was oversubscribed by 32.87 times, while the remaining shares were oversubscribed by 30.53 times by the public.
New shares allocated to eligible persons were fully subscribed, while new shares to Bumiputera investors via private placement were also fully taken up, KAF Investment said.
The offering of existing shares to selected investors through private placement was also fully bought up.
Notices of allotment will be posted to all successful applicants on Nov 17. PMW is slated to list on Nov 18.
The initial public offering (IPO) raised RM90.99 million from the issuance of 178.41 million new shares and an offer for sale of 89.21 million existing shares at 34 sen apiece. The listing offers up to a 30% stake in the company.
PMW International manufactures and sells a variety of pre-stressed concrete products, including spun concrete poles, piles and related items. The company also produces moulds, machinery and lighting products for the power, telecommunication and construction sectors in Malaysia and abroad.
Proceeds total RM60.66 million from the public issue. The company has earmarked 77% of proceeds for the construction of a new facility in Tanjung Manis, Sarawak, to better serve customers in East Malaysia and tap into growing infrastructure opportunities in Sabah and Sarawak.
Another 9.39% will be used for working capital requirements, with 12.65% going towards estimated listing expenses.
The offer for sale of 82.91 million existing shares, meanwhile, grossed RM30.33 million and went entirely to PMW chief executive officer Hon Hwa and his siblings Khim Hwa and Siew Yoke, both of whom are executive directors, as well as Richard Lee, who is in charge of the company’s Sabah operations.
KAF Investment is the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO.