KUALA LUMPUR (June 26): RNG Tech Bhd, a vending massage chair operator, said its shares offered to the public have been oversubscribed by 7.77 times ahead of the company's ACE Market listing on July 7.
Investors applied for 345.62 million shares worth RM44.9 million for the 39.4 million shares offered under the initial public offering (IPO), said RNG Tech in a filing with Bursa Malaysia on Friday.
The oversubscription rate is 5.24 times for the Bumiputera portion and 10.31 times for the other Malaysians' portion.
"We are encouraged by the strong response to our IPO, which reflects investors’ confidence in our market leadership, established 'Rest N Go' brand and regional growth prospects," said RNG Tech managing director Sophia Tan Sok Fei.
"The proceeds raised will support the expansion of our vending massage chair network, the refurbishment and upgrading of existing RNG stations and RNG premium outlets, as well as the strengthening of our operational capabilities," Tan added in a statement.
RNG Tech noted that 11.82 million shares reserved for eligible persons under the IPO, and 55.16 million issue shares made available via private placement to selected investors, have been fully subscribed.
Meanwhile, a total of 98.5 million IPO shares, comprising 74.86 million issue shares and 23.64 million offer shares, allocated to selected Bumiputera investors approved by the Ministry of Investment, Trade and Industry have been fully placed out after applying the relevant clawback and reallocation provisions as set out in the prospectus.
RNG Tech owns and operates 5,611 vending massage chairs across Malaysia, Singapore, Thailand, Cambodia and Brunei. In addition, 2,458 vending massage chairs are deployed in Vietnam and the Philippines under licensing arrangements.
The IPO, priced at 13 sen per share, raised RM16.39 million for the company. Nearly 30% of proceeds from the public issue will be channelled towards setting up new stations and premium outlets, while 13% will be allocated to refurbishing and upgrading existing outlets, and 18% to repay borrowings.
Tan and her husband, independent non-executive director Datuk Goh Cheh Yak, will together pocket RM10.24 million from the offer for sale under the IPO. Goh, who is also a co-founder of RNG Tech, stepped back from day-to-day operations to focus on expanding Gintell that sells massage chairs and fitness equipment.
M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO.