KUALA LUMPUR (July 14): Stratus Global Holdings Bhd, which provides factory automation, said its shares were oversubscribed by 128.82 times by public investors ahead of its Main Market listing.
The Malaysian public applied for 3.25 billion shares worth RM2.6 billion, despite only 25 million shares being made available for the initial public offering (IPO), according to the company’s bourse filing on Tuesday. The IPO was oversubscribed by 77.65 times for the Bumiputera portion and 179.99 times for the non-Bumiputera portion.
Allocation for eligible persons were fully subscribed, while shares made available private placement to selected investors have been fully placed out.
Stratus Global noted that shares reserved for identified Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti) were also fully subscribed.
There was no offer for sale of existing shares, meaning that existing shareholders are not cashing out their stakes in the company.
The notices of allotment will be posted to successful applicants on July 20. The company is scheduled to list on the Main Market of Bursa Malaysia on July 21.
Penang-based Stratus Global, which specialises in automated material handling systems for the semiconductor industry, plans to raise RM285 million through its IPO at 80 sen per share, valuing the company at RM1 billion upon listing.
The company operates two factories in Bayan Lepas with over 44,000 sq ft of production space, currently running near full capacity. IPO proceeds will be used mainly for facility expansion (RM122.6 million), R&D (RM45 million), overseas expansion (RM20 million) and working capital (RM82.4 million).
Founded in 1998 by CEO Ryo Narisawa, Stratus Global supplies systems that handle and store semiconductor materials such as silicon wafers in controlled environments. After the IPO, Narisawa will retain a significant stake in the company through direct and indirect holdings.
UOB Kay Hian (M) Sdn Bhd is the principal adviser, underwriter and placement agent for the IPO.
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