KUALA LUMPUR (July 6): Enest Group Bhd said its shares were oversubscribed just 1.9 times by the public investors ahead of its ACE Market listing.
Investors applied for 85.53 million shares worth RM11.12 million for the under 29.06 million shares under the initial public offering (IPO), according to a statement on a Friday. Oversubscription rate was 1.1 times for the Bumiputera portion and 2.8 times for non-Bumiputera.
Allocation for eligible persons were fully subscribed, while shares made available by way of private placement to Bumiputera investors approved by the Miti have been fully subscribed after clawback and reallocation provisions.
The notices of allotment will be posted to the successful applicants on July 13 and listing has been scheduled for July 15.
Based in Kajang, the company processes and trades edible bird’s nest products and is transferring its listing from the LEAP Market, a board designed for early stage and emerging small firms.
As trading on the board is restricted to sophisticated investors, a listing transfer to the ACE Market requires a company to provide an exit offer and undertake a public issue of shares.
The IPO raised about RM15 million for the company. Former chairman Tan Heng Guan as well as his son and executive director Tan Teh Sheng will together pocket RM2 million from the sale of existing shares.
The company has earmarked about one third of the proceeds from the public issue of new shares to repay bank borrowings and set aside 42% of the funds as working capital. The rest will be used to cover listing expenses.
Enest Group made a net profit of RM8 million on revenue of RM158 million in 2025. China accounted for about 63% of its revenue, while Malaysia provided 36%. The rest came from Australia, Vietnam, and other markets.
The company will have a market capitalisation of RM76 million based on its IPO price upon listing. The Tan family will reduce their combined stake in Enest Group to 45%, from about 60% before the listing.
M&A Securities is the IPO’s principal adviser, sponsor, underwriter and placement agent.