KUALA LUMPUR (Nov 28): The retail tranche of Geohan Corporation Bhd’s initial public offering (IPO) has been oversubscribed by 7.78 times, ahead of its Main Market debut.
A total of 5,392 applications for 193.24 million shares were received for the 22 million shares made available to the public, according to thee foundation and geotechnical engineering specialist’s IPO subscription results announcement on Friday.
The Bumiputera public portion was oversubscribed by 7.66 times, with 3,028 applications for 95.23 million shares received. The remaining public portion was oversubscribed by 7.91 times, after 2,364 applications for 98.01 million shares were submitted.
Shares reserved for eligible persons — comprising employees, directors and individuals who have contributed to the group — were fully subscribed, with all 11 million shares taken up.
Separately, all 99 million shares under the private placement were fully placed out to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti), as well as institutional and selected investors.
A total of 257 placees were allocated shares, with the top placee taking 20.42 million shares, or 20.63% of the placement tranche. No placee became a substantial shareholder following the IPO.
The IPO comprised a public issuance of 132 million new shares at 55 sen apiece, as Geohan sought to raise up to RM72.6 million.
Geohan unveiled its prospectus on Nov 17, with applications closing on Nov 21 and the listing scheduled for Dec 5.
The offering, which does not include an offer for sale by existing shareholders, will give the company a market capitalisation of RM242 million upon listing.
Founded in 1996, Geohan specialises in foundation and geotechnical works, including piling, slope stabilisation and sub-structure services. Its portfolio includes major projects such as Genting Highlands’ First World Hotel and infrastructure works for the Klang Valley mass rapid transit.
More than half of the IPO proceeds will go towards expanding its machinery fleet — including rotary boring rigs, crawler cranes and excavators — to increase operating capacity as it broadens its customer base in Singapore.
Another 35% is earmarked for working capital, with the remainder to cover listing expenses.
Managing director and founder Lee Kim Seng, who directly and indirectly controls nearly 96% of the company prior to listing, will see his combined stake diluted to about 67% following the IPO.
Alliance Islamic Bank Bhd is the principal adviser, sole underwriter and placement agent for the IPO.