KUALA LUMPUR (Sept 24): SLGC Bhd (KL:SLG) said the public portion of its initial public offering (IPO) was oversubscribed by 3.1 times, ahead of its Oct 6 listing on the ACE Market.
The construction services firm said in a press release on Thursday that it had received 4,647 applications for 113.71 million shares worth RM31.84 million based on the IPO price of 28 sen per share, compared with the 28 million shares made available to the Malaysian public.
SLGC said 1,962 applications for 31.31 million shares were received for the Bumiputera portion, representing an oversubscription of 1.24 times. The remaining public portion received 2,685 applications for 82.40 million shares, representing an oversubscription rate of 4.89 times.
SLGC managing director Yong Zhen Lin said in a separate statement: “We are encouraged by the response to our IPO… we see this as the beginning of the next phase for SLGC, where we will continue to build on the capabilities and relationships established over the years to further strengthen our position in the construction industry.”
The group added that two million shares allocated for eligible directors and employees of the group were fully subscribed.
Additionally, 70 million issue shares available for private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry of Malaysia (MITI) were fully placed out after applying relevant clawback and reallocation provisions.
A further five million issue shares and 63 million offer shares made available via private placement to selected investors were also fully placed out.
SLGC’s IPO involves a public issue of 105 million new ordinary shares and an offer for sale of 63 million existing shares.
The group plans to raise RM29.4 million, allocating RM9.2 million toward construction machinery and equipment, RM7.6 million to repay bank borrowings, and RM7.5 million for general working capital. The remaining funds will cover estimated listing expenses and software upgrades.
Yong added, "Continued investments in manufacturing plants, warehouses, logistics facilities, data centres and other industrial developments are expected to support demand for construction services. We are actively and selectively tendering for new projects while maintaining disciplined project execution and building a healthy project pipeline for the years ahead."
Successful applicants will be notified on Oct 2.
M&A Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.