KUALA LUMPUR (March 4): OGX Group Bhd, which provides infrastructure solutions for IT system integration, said its initial public offering (IPO) has been oversubscribed by 10.11 times ahead of its listing on the ACE Market of Bursa Malaysia on March 12.
A total of 7,051 applications for 416.8 million shares were received from the public, representing a value of RM145.88 million, according to a notice from Vistra, formerly known as Tricor Investor & Issuing House Services Sdn Bhd.
The Bumiputera portion attracted 3,887 applications for 199.5 million shares, translating to an oversubscription rate of 9.64 times, while the public portion recorded 3,164 applications for 217.3 million shares, representing 10.59 times oversubscription.
The 18.75 million shares reserved for eligible directors, employees and contributors to the group’s success were fully subscribed, it added.
Meanwhile, the 75 million issue shares to institutional and selected investors via private placement have been fully placed out.
Another 18.75 million shares and 75 million offer shares set aside for identified Bumiputera investors approved by the Ministry of Investment , Trade and Industry, have also been fully subscribed.
The notices of allotment will be posted to successful applicants on March 11.
Based in Shah Alam, Selangor, OGX sells multi-brand products and services focusing on network, cybersecurity and enterprise data centre solutions. The business was founded in 2007 by current chairman Tan Ting Fong and a partner who exited in 2016.
Tan stepped down from his executive role in 2020 and his son Tan Suan Loong now runs OGX as the managing director.
The company’s IPO comprised 150 million new shares and an offer for sale of 75 million shares. Priced at 35 sen per share, OGX will get RM52.5 million from the IPO while selling shareholders will together pocket RM26.25 million.
The company has also set aside RM2.5 million to broaden its portfolio of infrastructure brands and RM2 million for expansion to East Malaysia with new sales offices. The remaining RM18 million will go towards the repayment of bank borrowings, working capital requirements and listing expenses.
About two thirds of the proceeds from public issue of new shares will be allocated for expansion, including RM30 million for acquisition of a new facility that will become OGX’s future headquarters.
UOB Kay Hian (M) Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.