This article first appeared in The Edge Financial Daily on November 28, 2018

KUALA LUMPUR: Techbond Group Bhd, en route to list on Bursa Malaysia’s Main Market on Dec 5, saw the public portion of its initial public offering (IPO) oversubscribed 24.2 times.

In a statement yesterday, the industrial adhesive manufacturer said 8,158 applications for 289.75 million new shares, valued at RM191.24 million, were received for 11.5 million new shares made available for public subscription.

For the bumiputera portion, a total of 3,214 applications for 92.52 million new shares were received, representing an oversubscription rate of 15.09 times. For the public portion, 4,944 applications for 197.23 million new shares were received — an oversubscription rate of 33.3 times.

The six million new shares available for application by the eligible directors and employees of the group and other person(s) who have contributed to the group’s success have been fully subscribed.

In addition, the placement agent has confirmed that 23 million new shares available for application by way of private placement to bumiputera investors approved by the ministry of international trade and industry, and 19.61 million new shares for application by way of private placement to selected investors, have been fully placed out.

The notices of allotment will be despatched to all successful applicants on or before Dec 4.

Under the listing exercise, Techbond is raising RM39.67 million at an issue price of 66 sen per share from its public issue of 60.11 million new shares, of which 11.5 million were made available to the Malaysian public.