KUALA LUMPUR (June 21): Nestcon Bhd said it received 22,673 applications for 1.87 billion new shares, valued at RM523.97 million, representing an overall oversubscription rate of 57.13 times the 32.19 million initial public offering (IPO) shares made available for the Malaysian public.

In a filing with the bourse, the construction group said it received 11,281 applications for 712.72 million new shares for the Bumiputera portion, equivalent to an oversubscription rate of 43.28 times.

Meanwhile, the group received 11,392 applications for 1.16 billion new shares for the public portion, which represented an oversubscription rate of 70.98 times.

Nestcon said the 32.19 million new shares available for application by the eligible directors and employees of the group were fully subscribed.

The group had also fully placed out 16.1 million new shares by way of private placement to selected investors, 80.47 million new shares to identified Bumiputera investors approved by the Ministry of International Trade and Industry and 32.19 million offer shares via private placement to selected investors.

Earlier this month, the group said it aimed to raise RM45.1 million via its IPO on the ACE Market, with part of the proceeds to be used for the setting up of an industrialised building system facility, as well as to upgrade its software systems.

Nestcon also intends to acquire more equipment and machinery to strengthen its technical capabilities to take on larger projects, and further expand into other segments such as renewable energy.

Tentatively, the group will see its shares listed on June 29.