Story updated to correct the figure in the headline and the first paragraph. The error is regretted.

KUALA LUMPUR (May 27): Yew Lee Pacific Group Bhd (YLPG), which is slated to be listed on the ACE Market of Bursa Malaysia on June 7, said the public portion of its initial public offering (IPO) has been oversubscribed by 26.86 times.

The industrial brush manufacturer said it received a total of 10,107 applications seeking 741.59 million new shares for the 26.62 million shares made available for the Malaysian public pursuant to the IPO.

Meanwhile, a total of 5,570 applications came in under the Bumiputera portion for 288.36 million new shares, which represented an oversubscription rate of 20.66 times.

“For the public portion, a total of 4,537 applications for 453.23 million new shares were received, which represents an oversubscription rate of 33.05 times,” it added.

Under the eligible directors and employees category, the 15.97 million new shares made available were fully subscribed, the company said.

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

“The placement agent has confirmed that the 117.14 million shares made available for application by way of private placement have been fully placed out,” YLPG added.

At an issue price of 28 sen per share, YLPG had said that it aims to raise gross proceeds of RM37.27 million.

The Perak-based company has earmarked RM10.9 million for the purchase of machinery and equipment, RM8.9 million for the repayment of bank borrowings, and RM7.3 million for the construction of new warehouse facilities and office buildings.

Additionally, RM4.57 million is to be used for working capital requirements, RM3.8 million for listing expenses, and the remaining RM1.8 million is allocated for the renovation of a new three-storey office.