KUALA LUMPUR (July 14): TCS Group Holdings Bhd said its initial public offering has been oversubscribed by 33.39 times.

Its IPO entails the public issuance of up to 90 million new ordinary shares representing 25% of its enlarged total number of shares (public issue), and an offer for sale of up to 18 million existing shares (offer shares) at an issue price of 23 sen per share. The company will raise approximately RM20.7 million from the public issue.

The 90 million public issue includes up to 10.8 million issue shares for the Malaysian public via balloting (including 5.4 million for Bumiputera investors or Bumiputera balloting portion), up to 7.2 million shares for eligible directors and employees, 32.4 million shares for institutional and selected investors by way of private placement, and another private placement of 39.6 million shares to identified Bumiputera investors.

The ACE-Market bound building and infrastructure construction services provider said in a statement that it received a total of 5,825 applications for 371.4 million shares, worth RM85.42 million. This comprises 2,776 applications for 123.77 million shares for the Bumiputera balloting portion, which translates to an oversubscription rate of 21.92 times; and 3,049 applications for 247.622 million shares for the public balloting portion, which represents an oversubscription rate of 44.86 times.

The 7.2 million shares for eligible directors and employees have also been fully subscribed, while the private placements have been fully placed out, the group added.

The notices of allotment will be posted to all successful applicants on or before July 21, it said.

"We are very pleased with the positive response for our IPO, as it reflects the market’s confidence towards TCS Group’s growth prospects. This is indeed an opportune time for us to further strengthen our foothold and capitalise on the opportunities in the construction industry, underpinned by the prospective property launches in our clients’ pipeline, as well as the implementation of various government measures and economic stimulus packages,” said TCS Group Managing Director Datuk Tee Chai Seng.

“Moving forward, we will channel our proceeds raised to further strengthen our presence in the high rise, purpose-built and institutional buildings segments, backed by our established track record in building construction projects. In addition, we also plan to broaden our revenue stream by venturing into infrastructure construction services to include major roads, highways and bridges.”

TCS is scheduled to be listed on the ACE Market of Bursa Securities on July 23. Upon listing, it will have a market capitalisation of RM82 million, based on the issue price of 23 sen per share and its enlarged total number of 360 million shares.

RHB Investment Bank is the sole principal adviser, sponsor, sole underwriter and sole placement agent for the IPO exercise, it concluded.