KUALA LUMPUR (Oct 15): En route to list on the ACE Market of Bursa Malaysia, door system solution provider Econframe Bhd’s initial public offering (IPO) of 16.25 million shares for the Malaysian public have been oversubscribed by 40.23 times.
In a statement today, Econframe said the group’s listing exercise entails a public issue of 65 million new shares and an offer for sale of up to 32.5 million existing shares at an issue price of 28 sen per share. The company aims to raise approximately RM18.2 million.
Econframe said it has received 11,827 applications for 670.02 million new shares with a value of RM187.61 million for the 16.25 million new shares that have been allocated for the Malaysian public. This represents an oversubscription rate of 40.23 times.
For the Bumiputera portion, it was oversubscribed by 35.63 times, after a total of 6,105 applications for 297.61 million new shares were received.
Meanwhile, the 3.25 million new shares available for eligible directors and employees have been fully subscribed.
According to Econframe, the private placement of 13 million new shares available to selected investors as well as 32.5 million new shares available to identified Bumiputera investors approved by the Ministry of International Trade and Industry (MITI) have also been fully subscribed, while the offer for sale of 32.5 million existing shares have all been fully placed out.
The notices of allotment will be posted to all successful applicants on or before Oct 22, 2020.
Slated to be listed on Oct 27, 2020, Econframe is valued at RM91 million based on the issue price of 28 sen and its enlarged share capital of 325 million shares.
M&A Securities Sdn Bhd is the adviser, sponsor, underwriter, and placement agent for the IPO exercise.