KUALA LUMPUR (Sept 8): Mechanical and civil engineering services provider Pioneer Heat Holdings Bhd (KL:PIONEER) said the public portion of its initial public offering (IPO) was oversubscribed by 47.80 times, ahead of its ACE Market listing on Sept 17.
The group said in a statement on Tuesday that it had received a total of 9,512 applications for 846.5 million shares worth RM211.62 million based on the IPO priced at 25 sen per share, compared with the 17.35 million available to the Malaysian public.
“We are encouraged by the positive response from investors to our IPO. This support reflects confidence in Pioneer Heat’s specialised capabilities, operating track record and growth plans as we move closer towards our listing on the ACE Market,” said chief executive officer and executive director Wong Wei Ken.
Pioneer Heat said 5,142 applications for 506.08 million shares were received for the Bumiputera portion, representing an oversubscription of 57.35 times. For the remaining public portion, 4,370 applications were submitted for 340.40 million shares, representing an oversubscription rate of 38.25 times.
The group added that 10.41 million shares allocated to eligible directors, employees, and contributors were fully subscribed.
Additionally, 76.29 million shares for private placement, comprising 58.95 million new shares and 17.35 million existing shares, was fully placed out.
Pioneer Heat’s IPO involves a total public issue of 86.70 million new shares and an offer for sale of 17.35 million existing shares.
The company aims to raise RM26.02 million from the listing, with RM21.68 million going to the company, while RM4.34 million will go to its three promoters, brothers Wong Hing Chong, Wong Hing Kok and Wong Heng Chong.
Upon listing, the group will have an enlarged share capital of 346.90 million shares, giving it a market capitalisation of RM86.73 million.
Wong added “that the proceeds raised will be utilised to strengthen operational capacity through the establishment of a new headquarters in Sendayan and a new office in Sarawak, as well as to purchase additional machinery and equipment”.
Applications for the IPO closed on Sept 3 and successful applicants will be notified by Sept 15.
Malacca Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.