Enproserve IPO sees 0.43 times oversubscription for public shares
KUALA LUMPUR: Mechanical and civil engineering services provider Enproserve Group Bhd saw strong demand for its ACE Market initial public offering (IPO), with the public portion oversubscribed by 0.43 times.
In a statement, Enproserve said it received 1,414 applications for 74.9 million public issue shares from the Malaysian public, valued at around RM18mil.
This exceeded the 52.5 million shares offered to the public via balloting, leading to an oversubscription rate of 0.43 times.
Enproserve said the strong investor demand across all subscription tranches reflects the group's solid value proposition and strategic position within a key industry segment.
'The strong reception to our IPO validates investor confidence in Enproserve's resilient business model and strategic position within the vital oil and gas and petrochemical industries.
'With enhanced capabilities as we continue to scale our operations, we are primed to accelerate growth and further expand our market share,' group managing director Azman Yusof said.
The Bumiputera portion received 705 applications for 40.57 million shares, resulting in an oversubscription rate of 0.55 times, while the non-Bumiputera portion saw 709 applications for 34.39 million shares, translating to an oversubscription rate of 0.31 times.
At the same time, all 244.18 million shares offered to selected investors through private placement were fully taken up. The 18.32 million shares set aside for eligible directors, employees, and contributors to the group were also fully subscribed.
The IPO, priced at RM0.24 per share, involves a total of 315 million ordinary shares, consisting of 210 million new shares under the public issue and 105 million existing shares offered for sale. Upon listing, the company's enlarged share capital will stand at 1.05 billion shares.
The IPO raised RM50.4mil in gross proceeds for Enproserve through new share issuance. Of this, RM23.7mil will go towards capital spending to strengthen its plant maintenance, turnaround, and engineering services, including the purchase of heavy equipment and vehicles.
The remaining RM26.7mil will be used for working capital, loan repayments, and listing-related expenses.
Enproserve is expected to be listed on the ACE Market of Bursa Malaysia on July 18.
KAF Investment Bank Bhd is the principal adviser, sponsor, sole placement agent, and sole underwriter for the IPO.
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