KUALA LUMPUR (Sept 26): Home grown bakery products maker SDS Group Bhd, en route to list on the ACE Market of Bursa Malaysia on Oct 7, saw the public portion of its initial public offering (IPO) oversubscribe by 11.34 times..

In a statement today, SDS, whose brands include Top Baker and Daily’s, said a total of 3,065 applications for 250.41 million new shares, valued at RM57.59 million, were received from the Malaysian public for 20.29 million new shares that were made available for public subscription.

It added that 23.13 million new shares for eligible directors, employees and business associates/persons have also been fully subscribed.

Another 60.87 million new shares made available for application by way of private placement to selected investors have also been fully placed out.

SDS managing director Tan Kim Seng said this marked a positive beginning for the group.

"We are certainly encouraged by the response, which is testimony to the public's confidence in SDS Group's business model.

"I am confident that SDS Group will grow stronger, better and more competitive and we will strive to ensure that we do not disappoint our shareholders and investors who placed their trust in us," he added.

Under the listing exercise, SDS Group has raised RM23.99 million from its public issue of 104.29 million new shares at 23 sen per share.

Of the total IPO proceeds, RM6 million will be used to expand its business presence for both the wholesale and retail channels within the northern and central regions of Peninsular Malaysia respectively, with the additional capacity from its new manufacturing plant in Seremban.

The company said it will further use RM7.79 million for working capital, RM7 million to repay bank borrowings and the remaining RM3.2 million to be used to defray listing expenses for the IPO.

SDS said all notices of allotment for these shares will be mailed to successful applicants on or before Oct 3.

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