KUALA LUMPUR (Feb 11): TeamStar Bhd, a home improvement and hardware solutions provider, said its initial public offering (IPO) was oversubscribed by 4.2 times ahead of its scheduled listing on the ACE Market of Bursa Malaysia on Feb 25.

According to the company's filing on Tuesday (Feb 10), it received a total of 3,596 applications for 207.92 million IPO shares from the Malaysian public, representing a total value of RM54.06 million. The Bumiputera portion was oversubscribed by 3.2 times while the non-Bumiputera portion recorded an oversubscription of 5.2 times.

Meanwhile, the 15 million shares reserved for eligible directors, employees and persons who contributed to the group were fully subscribed. The 48 million shares allocated to selected investors were also fully placed out. So too were the 100 million shares reserved for identified Bumiputera investors approved by the Ministry of Investment, Trade and Industry-approved Bumiputera investors after clawback and reallocation.

Its IPO comprises a total of 204 million shares, priced at 26 sen each. This consists of a public issue of 132 million new shares and an offer for sale of 72 million existing shares.

TeamStar executive vice-chairman and group CEO Tan Lee Kueng previously said that IPO proceeds for the company, estimated at RM34.32 million, would primarily drive the company's retail expansion. TeamStar is expected to have an enlarged share capital of 800 million shares upon listing, giving it an initial market capitalisation of RM208 million.

TA Securities Holdings Bhd is the principal adviser, sponsor, sole underwriter and sole placement agent for the exercise.