KUALA LUMPUR (June 11): HSS Holdings Bhd's initial public offering (IPO) has been oversubscribed by 10.56 times for the public portion, ahead of the bakery products company's ACE Market debut on June 23.
Applications for 289.1 million shares were received for the 25 million shares made available to the Malaysian public, according to a statement on Thursday.
The Bumiputera portion was oversubscribed by 7.29 times after attracting applications for 103.64 million shares, while the other Malaysians public portion recorded an oversubscription rate of 13.84 times with applications for 185.46 million shares.
The shares reserved for eligible directors, employees and contributors to the company's success were fully subscribed, while all shares offered under the private placement tranches were fully placed out.
Notice of allotment will be issued to successful applicants ahead of HSS Holdings' scheduled listing on June 23.
Based in Johor, HSS Holdings markets bakery products including cookies, biscuits, cakes and snacks under its own brands such as SINAR. It has a network of 330 wholesalers, five distributors and 117 retailers across Malaysia, Singapore, Australia and Indonesia.
HSS Holdings is unrelated to listed construction services firm HSS Engineers Bhd (KL:HSSEB). Its IPO comprises a public issue of 75 million new shares and an offer for sale of 52.5 million existing shares.
HSS Holdings is expected to have a market capitalisation of RM90 million upon listing, based on its IPO price of 18 sen per share.
The company plans to use the IPO proceeds to strengthen its production capabilities and improve operational efficiency as it expands its bakery products business.
M&A Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.