KUALA LUMPUR (Jan 14): Melaka-based frozen food distributor Guan Huat Seng Holdings Bhd saw the public portion of its initial public offering (IPO) oversubscribed by 4.78 times ahead of its listing on the ACE Market on Jan 22.
The IPO recorded a total subscription rate of 5.78 times, with demand totalling 137.61 million shares for 23.8 million new shares made available to the Malaysian public, according to Guan Huat Seng in a bourse filing.
The Bumiputera portion was oversubscribed by 1.96 times, while the non-Bumiputera portion was oversubscribed by 7.61 times.
All new shares allocated to eligible persons were fully subscribed, while private placements of both new and existing shares — including those for Bumiputra investors approved by the Ministry of Investment, Trade and Industry — were also fully taken up.
Guan Huat Seng specialises in the distribution of frozen foods and shelf-stable products.
The IPO involves the public issue of 120 million new shares at 25 sen each to raise RM30 million. Proceeds have been earmarked to partially fund the setting up of a new integrated complex in Melaka, a new manufacturing facility in Krubong, working capital and marketing expenses.
The offer for sale of 21 million existing shares will raise RM5.25 million for managing director Yeo Tien Ee, executive director Yeo Tian Seng and their mother Chan Kim Yeo.
TA Securities Holdings Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.