KUALA LUMPUR (Jan 9): Branding and marketing firm SBS Nexus Bhd has received strong demand from investors for its shares ahead of its listing on the ACE Market.

Applications from the Malaysian public totalled 570.28 million shares or RM142.57 million, which were 22 times above the allocation, according to a statement. The Bumiputera portion was oversubscribed 23 times and orders from non-Bumiputera exceeded available shares by 21 times.

Shares set aside for eligible persons under the initial public offering (IPO) were fully subscribed.

The private placement to select and Bumiputera investors was fully placed out. The offer for sale of existing shares to select investors through private placement was also fully taken up.

The shares will be allotted to successful applicants on Jan 16 and listing has been scheduled for Jan 20.

SBS Nexus is mainly involved in marketing and branding services such as content creation and digital billboard advertisement, among others. 

Under the listing exercise, the company will receive RM30.6 million of the IPO proceeds, while another RM12.25 million will go to chief operating officer Warren Cheng, head of digital Lai Kian Chuan and chief business officer Lim Cheng Yong, who put their existing shares for the sale.

At an IPO price of 25 sen per share, SBS Nexus is estimated to have a market capitalisation of about RM123 million upon listing.

M&A Securities is the sole adviser, sponsor, underwriter and placement agent for the IPO.