KUALA LUMPUR (May 8): Johor-based property developer Gold Li Holdings Bhd, which is seeking a listing on the ACE Market, said its initial public offering (IPO) has been oversubscribed by 3.26 times.

Applications for 127.8 million shares were received for the 30 million shares offered to the Malaysian public, according to the company's bourse filing on Friday.

The Bumiputera portion attracted applications for 32.9 million shares, representing an oversubscription rate of 1.19 times, while the public portion drew applications for 94.9 million shares, giving an oversubscription rate of 5.33 times.

The six million shares reserved for eligible directors and employees were fully subscribed, the company added.

Meanwhile, the 39 million new shares and 36 million existing shares allocated to Bumiputera investors approved by the Ministry of Investment, Trade and Industry, as well as the 42 million shares placed out to selected investors, were fully taken up after clawback and reallocation adjustments.

Gold Li is scheduled to make its debut on the ACE Market on May 18.

The IPO, priced at 13 sen per share, will raise RM15.21 million, with more than 70% of the proceeds to be used to partly fund three ongoing projects and one of its planned developments.

RM4.7 million in proceeds from Gold Li's offer for sale shares will accrue entirely to the selling shareholders, namely managing director Datuk Lee Tiau Huat and executive director cum chief operating officer Datin Lau Siew Yu.

Following the IPO, their combined shareholding will be diluted to 73.3%, mainly held through their investment vehicle Setia Mega Sdn Bhd, which will retain a 66.3% stake.

Founded in 1999, Gold Li focuses on landed residential developments and has completed 110 projects across Johor, mainly in Muar, Tangkak and Batu Pahat. The group also operates as its own main contractor.

For the financial year ended Jan 31, 2025 (FY2025) Gold Li recorded a net profit of RM7.84 million on revenue of RM65.03 million, translating into a gross profit margin of 26.5% and a net profit margin of 12.1%.

Upon listing, the company is expected to have a market capitalisation of RM78 million with a price-to-earnings ratio of 10 times based on its FY2025 earnings. The company does not have any dividend policy.

M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO.