KUALA LUMPUR (April 7): 5E Resources Holdings Bhd saw the public portion of its initial public offering (IPO) oversubscribed by 7.04 times ahead of its listing on the ACE Market on April 15.
Applications for 618.71 million shares were received for the 77 million new shares made available to the Malaysian public, said the Johor-based scheduled waste company in a bourse filing on Tuesday.
The Bumiputera portion was oversubscribed by 3.46 times, while the non-Bumiputera portion was oversubscribed by 10.61 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.
Based in Pasir Gudang, 5E Resources provides end-to-end scheduled waste management services, including testing, collection, recovery, and recycling.
With about 18 years of operating history, the company holds licences covering 34 of the 77 regulated scheduled waste categories under Malaysian environmental regulations and has an annual processing capacity exceeding 280,000 tonnes.
The IPO involves the public issue of 304.5 million new shares at 26 sen each to raise RM79.17 million.
Proceeds will primarily fund the construction of a new facility in Perak, which is expected to lift total annual capacity to nearly one million tonnes. About 72% of the funds will go towards the facility’s construction and the acquisition of machinery and equipment.
Meanwhile, the offer for sale of 154 million existing shares will raise RM40.04 million for 5E Resources chief executive officer Lim Te Hua, chairperson Loo Sok Ching, shareholders Wong Kim Fatt and Ban Kim Wah, and chief operating officer Shankar Narasingam.
TA Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.