KUALA LUMPUR (Oct 8): Cable and wire manufacturer Southern Cable Group Bhd, which is en route to list on the ACE Market of Bursa Malaysia on Oct 16, saw the public portion of its initial public offering (IPO) oversubscribed by 10.48 times.

In a bourse filing, the group said it received 10,308 applications for 459.03 million shares for the 40 million shares earmarked for the Malaysian public.  

For the Bumiputera allocation, it was oversubscribed by 5.18 times after 4,100 applications for 123.54 million shares were received.  

As for the public portion, 6,208 applications for 335.48 million shares were received, representing an oversubscription rate of 15.77 times.

Of the total 40 million issue shares, the bumiputera and public categories were allocated 20 million each.

Another 67.35 million new shares allocated for private placement to selected investors as well as 20 million offer shares have also been fully placed out.

“All notices of allotment for these IPO shares will be mailed to successful applicants on or before October 16, 2020,” the group said.

Southern Cable’s IPO entails a public issue of 209.3 million new shares and an offer for sale of 20 million existing shares at an issue price of 34 sen per share.

Under the listing exercise, the group has raised RM71.2 million.

It has allocated RM30 million for capital expenditure and expansion, RM27.5 million for working capital, RM9.2 million for repayment of bank borrowings and RM4.5 million to defray estimated listing expenses.

MIDF Amanah Investment Bank Bhd is the principal adviser, sponsor, sole underwriter and placement agent for the IPO exercise.