KUALA LUMPUR (April 24): Manforce Group Bhd’s (KL:MFGROUP) initial public offering (IPO) for its transfer to the ACE Market of Bursa Malaysia was oversubscribed by 2.07 times, ahead of its scheduled listing on May 6.
Applications for 61.42 million shares worth RM23.34 million were received for the 19.999 million shares made available to the Malaysian public, according to the group's Bursa Malaysia filing on Friday.
The Bumiputera portion received 1,270 applications for 16.73 million shares, representing an oversubscription rate of 0.67 times.
The public portion received 1,662 applications for 44.69 million shares, translating into an oversubscription rate of 3.47 times.
The 10 million shares reserved for eligible directors and employees were fully subscribed.
Meanwhile, the 29.999 million new shares and 19.999 million existing shares set aside for Bumiputera investors approved by the Ministry of Investment, Trade and Industry, as well as the 19.998 million new shares placed out to selected investors, were fully taken up after clawback and reallocation adjustments.
Manforce, which was previously listed on the LEAP Market, is a workforce management services provider specialising in foreign worker recruitment and management, as well as project cleaning services.
Priced at 38 sen a share, the IPO comprises a public issuance of 79.996 million new shares and an offer for sale of 19.999 million existing shares. The exercise is expected to raise RM30.4 million for the group, while the offer for sale will generate RM7.6 million for managing director Datuk Wong Boon Ming.
The company has earmarked RM14.74 million of the proceeds to expand business operations by increasing its recruitment quota, with the remaining to be utilised for IT and operational upgrades, working capital and listing expenses.
Upon listing, Manforce is expected to command a market capitalisation of about RM152 million. At the IPO price, the stock is valued at about 15 to 16 times its trailing 12-month earnings, according to previous reports.
TA Securities on Monday said the IPO price leaves no upside at listing and projected the group’s earnings could decline 4% this year before recovering in 2027, citing slower growth following a government freeze on new foreign worker arrivals since May 2024.
M&A Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO, while Eco Asia Capital Advisory Sdn Bhd is the financial adviser.
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