KUALA LUMPUR (Oct 13): NWE Resources Group Bhd said the Malaysian public portion of its initial public offering (IPO) was oversubscribed by 2.82 times ahead of its ACE Market debut on Oct 21.
The company received 3,068 applications for 103.16 million shares, compared with the 27 million shares available to the Malaysian public, according to a Bursa Malaysia filing on Tuesday.
The Bumiputera portion was oversubscribed by 1.88 times after NWE Resources received 1,536 applications for 38.93 million shares, while the non-Bumiputera portion was oversubscribed by 3.76 times, with 1,532 applications for 64.23 million shares.
Meanwhile the 10.8 million shares reserved for eligible directors, employees and other eligible persons were fully subscribed, while all 105.35 million shares for private placement to selected investors were taken up.
The company said the private placement shares were allocated to 16 investors, with the three largest investors accounting for 72.19% of the placement tranche.
NWE Resources’ IPO, priced at 20 sen per share, comprises a public issue of 143.15 million new shares, equivalent to a 26.51% stake, to raise approximately RM28.6 million. There is no offer for existing shares.
Of the proceeds, RM9.1 million will be used for new product development, RM8.2 million for working capital and RM4.6 million for marketing and promotional activities.
The remaining proceeds will fund research and development capabilities, a new sales office in Johor, rooftop solar installations, vehicles and listing expenses.
The Shah Alam-based company mainly distributes health food through multi-level marketing, supplies shampoo and other personal care products to hotels and resorts, and repackages food and beverages.
The IPO price values NWE Resources at RM108 million upon listing, which is about about 13 times its RM8.5 million net profit for the financial year ended March 31, 2026 (FY2026).
Its FY2026 earnings rose from RM6.9 million a year earlier, despite revenue declining to RM41.6 million from RM43.5 million.
Post-listing, the company will still be controlled by Agile Plan, the investment vehicle of the Tan siblings, with a 45.02% stake. Meanwhile, TCMBIO International Sdn Bhd, wholly-owned by business development director Teo Eng San, will hold a 24.81% stake.
KAF Investment Bank Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.