KUALA LUMPUR (Nov 4): Data centre engineering services provider MyDCD Bhd’s initial public offering (IPO) was oversubscribed by 36.46 times for the Malaysian public portion ahead of its ACE Market listing on Nov 17.
It received applications for 3.36 billion shares worth RM1.88 billion for the 89.7 million shares available for subscription by retail investors, according to a Bursa Malaysia filing on Wednesday. The oversubscription rate was 24 times for the Bumiputera portion and 48.92 times for the non-Bumiputera portion.
Meanwhile, the 36 million shares reserved for eligible directors, employees and other entitled persons and 354.3 million shares offered to selected investors and Bumiputera investors approved by the Ministry of Investment, Trade and Industry were also fully placed.
Notices of allotment will be sent to successful applicants by Nov 12.
MyDCD provides mechanical, electrical, plumbing and fire protection engineering services, primarily for data centres. Upon listing, the company's market capitalisation is approximately RM1 billion.
The IPO, priced at 56 sen per share, comprises a public issue of 335 million new shares to raise RM187.6 million for the company and an offer for sale of 145 million existing shares that will raise RM81.2 million for selling shareholders.
Of the proceeds raised by the company, RM134 million will be allocated for working capital, mainly to support project execution and performance bonds, while RM39.9 million will go towards business expansion.
Another RM5 million has been earmarked for information technology upgrades and the remaining RM8.7 million will cover listing expenses.
TA Securities Holdings Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.