KUALA LUMPUR (Jan 10): Integrated engineering supporting services provider Coraza Integrated Technology Bhd said the Malaysian public portion of its initial public offering (IPO) was oversubscribed by 132.5 times.

The company, which is set to list on Bursa Malaysia’s ACE Market on Jan 20, 2022, said it received 26,781 applications seeking 2.86 billion new shares for the 21.4 million new shares made available for the Malaysian public under the IPO.

A total of 12,482 applications for 1.01 billion new shares were received under the Bumiputera category, representing an oversubscription rate of 93.7 times, while a total of 14,299 applications for 1.85 billion new shares were received under the public portion, representing an oversubscription rate of 171.4 times.

Meanwhile, Coraza said the 21.4 million new shares for its eligible directors, employees and persons who have contributed to the success of Coraza group have also been fully subscribed.

It added that 96.4 million shares made available for application by way of private placement to selected investors have been fully placed out.

In a statement, Coraza managing director Lim Teik Hoe said the support garnered is an encouraging sign as Coraza embarks on its next phase of growth as a public-listed company.

“Our prospectus opening period was during the Christmas and year-end holiday season. We are certainly encouraged by the overwhelming response from the public, which is a testimony to the public’s confidence in Coraza’s business model and future plans,” he said.

He said the proceeds will enable the company to expand its existing manufacturing floor space in anticipation of strong demand for their services.

“It will also enable us to part-finance the construction of a new factory adjacent to our existing factory in Nibong Tebal, Penang to expand our production capacity and service offerings to take advantage of the rapid growth in the semiconductor industry,” he added.

Under the listing exercise, Coraza is expected to raise RM33 million from its public issue of 117.8 million new shares at an issue price of 28 sen per share. The listing also includes an offer for sale of 21.4 million existing shares to selected investors by way of private placement.

Based on the enlarged share capital of 428.3 million shares, the total market capitalisation of Coraza upon its listing would be RM119.9 million.

M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for the IPO exercise.