KUALA LUMPUR (Feb 9): Poultry producer Hock Soon Capital Bhd received a muted response from investors ahead of its initial public offering (IPO), with its shares oversubscribed by just 0.36 times. The company is scheduled to debut on the Main Market on Feb 13.
The IPO registered a total subscription rate of 1.36 times, attracting demand for 33.88 million shares against 25 million new shares offered to the Malaysian public, according to its bourse filing.
The Bumiputera tranche was marginally undersubscribed at 0.99 times, while the non-Bumiputera portion saw an oversubscription of 0.72 times. Despite the lukewarm public reception, all shares allocated to eligible persons and the private placement of existing shares to selected investors were fully taken up.
The private placement of new shares to Bumiputera investors approved by the Ministry of Investment, Trade and Industry was also fully subscribed, following a clawback and reallocation exercise.
Based in Perak, the family-run company specialises in the rearing of layer chickens for the production and sale of table eggs. It sells its eggs unbranded, under its in-house Qplus label, or as third-party brands for its customers.
The IPO entails a public issue of 100 million new shares priced at 60 sen each, to raise RM60 million to fund a new poultry farm in Teluk Intan, expand feed mill operations, and strengthen its distribution network.
Separately, there is an offer for sale of 50 million existing shares under the IPO, which will raise RM30 million for managing director Ong Boon Leng and his family, including his spouse Lim Suk Gen and sons Ong Keat Qian and Ong Keat Hoe.
M&A Securities is the principal adviser, sponsor, underwriter, and placement agent for the IPO.