KUALA LUMPUR (April 14): AMS Advanced Material Bhd’s public portion of its initial public offering (IPO) was oversubscribed by 9.03 times ahead of its listing on the ACE Market on April 23.
In a bourse filing on Tuesday, the company said it received 8,110 applications for 307.03 million shares worth RM89.04 million under the public balloting portion.
The Bumiputera portion was oversubscribed by 2.98 times while the remaining public portion was oversubscribed by 15.08 times.
Private placement shares to Bumiputera investors and the private placement to selected investors were also both fully subscribed.
AMS Advanced Material is principally involved in the trading of semi-finished aluminium and copper products, as well as the processing of semi-finished aluminium products. It sells to manufacturers, contractors, and fabricators in industries within the aerospace, semiconductor and automotive industries.
The IPO was set at 29 sen per share whereby AMS Advanced Material was looking to raise up to RM32.8 million for the company and another RM13.6 million for a private vehicle owned by managing director Keh Teng Yang.
AMS Advanced Material is allocating RM8.1 million of the proceeds to set up a manufacturing facility that doubles as a warehouse in Penang to support its export-oriented semiconductor and engineering clients. The funds will also be accrued to expanding its aluminium architectural products segment and setting up a new distribution point in Kuantan, Pahang.
The remainder will be used to cover bank repayments, working capital and listing-related expenses.
M&A Securities is the IPO’s principal adviser, sponsor, underwriter and placement agent.