KUALA LUMPUR: Electrical engineering service provider HE Group Bhd's initial public offering (IPO) has been oversubscribed by 63.35 times ahead of its listing on the ACE Market of Bursa Malaysia.
A total of 22 million shares were made available for the public which received 12,201 applications for 1.42 billion shares valued at RM396.37 million, for the overall 63.35 times oversubscription rate.
For the Bumiputera portion, 7,533 applications for 801.90 million shares were received, representing an overall oversubscription rate of 71.90 times.
As for the public portion, a total of 4,668 applications for 613.70 million shares were received, resulting in an oversubscription rate of 54.79 times.
"The 11 million shares available for application by the eligible directors and employees, as well as persons who have contributed to the success of the company have been fully subscribed.
"Meanwhile, the private placement of 53.89 million shares and 44 million offer shares made available for application by way of private placement to selected investors have also been fully placed out.
"Notices of allotment will be posted to all successful applicants by Jan 29 2024," it said in a statement.
HE Group managing director Haw Chee Seng said it will use the IPO proceeds to transform into an integrated mechanical, electrical and process engineering service player.
"By being a single-point-of-contact, we can enhance the quality and convenience for our customers, while enabling us to effectively capture new business opportunities," added Haw.
HE Group is scheduled to be listed on the ACE Market on Jan 30.
Upon listing, HE Group will have a market capitalisation of approximately RM123.20 million based on the issue price of 28 sen per share and the enlarged share capital of 440 million shares.