KUALA LUMPUR (Sept 18): Evocom Bhd’s initial public offering (IPO) has been oversubscribed by 3.60 times, ahead of its planned listing on Bursa Malaysia’s ACE Market on Sept 28.

In a statement on Friday (Sept 18), the group said it received 6,326 applications from the Malaysian public for 104.69 million new shares, against 22.78 million shares offered, resulting in an overall oversubscription rate of 3.60 times.

The Bumiputera portion received 2,364 applications for 31.10 million shares, representing an oversubscription rate of 1.73 times, while the remaining Malaysian public portion received 3,962 applications for 73.60 million shares, or 5.46 times the shares available.

A further 34.17 million new shares the group set aside for placement to selected investors, together with 56.95 million new shares for certain Bumiputera investors approved by Miti, were fully placed after applying the relevant clawback and reallocation provisions, as set out in its prospectus.

The 22 million existing shares that were put up under the offer for sale as part of the IPO were also fully placed out, it added. Proceeds from this offer for sale will go entirely to the selling shareholder, Ian Tan Kee Chuan, Evocom's founder and chief executive officer.

The notices of allotment will be mailed to successful applicants by Sept 25.

Altogether, Evocom's IPO comprises 113.91 million new shares and an offer for sale of 22 million existing shares, priced at 18 sen per share.

Headquartered in Semenyih, Evocom mainly supplies manpower to support the logistics operations of online commerce platforms. The company also provides network support services, including last-mile delivery, transshipment and parcel shipment service.

SPX Express, the in-house delivery arm owned by the e-commerce platform Shopee, accounts for more than 80% of Evocom's annual revenue.

Evocom, which also manages two of Lazada’s distribution hubs, was granted a licence last year to provide international inbound courier service.

More than one-third of the IPO proceeds has been earmarked as working capital for its cash-intensive staffing service. The company is also spending another 30% to develop technology application and to expand its air freight transshipment business.

Evocom is also setting aside 7% to set up its new headquarters in Nilai, Negeri Sembilan and another 7% as general working capital. The rest will be used to cover listing expenses.

NewParadigm Securities Sdn Bhd is the IPO's principal adviser, sponsor, sole underwriter and sole placement agent.