E.A. Technique’s IPO oversubscribed

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KUALA LUMPUR (Dec 4): The weak sentiment on the oil & gas companies does not seem to have dampened investors’ interest in E.A Technique Bhd’s initial public offering (IPO).

In a statement this evening, E.A Technique said its public issue of 25.2 million shares were oversubscribed.  

“A total of 7,237 applications for 154.11 million issue shares were received from the Malaysian public, representing an oversubscription rate of 5.12 times,” Malaysian Issuing House Sdn Bhd said in a statement to Bursa Malaysia this evening.

Of the total applications, Bumiputera category recorded an oversubscription of 6.84 times, with 4,653 applications; while the other Malaysians category registered 3.4 times, with 2,584 applications.

“All notices of allotment for the issue shares will be mailed to the successful applicants, on or before Dec 10,” Malaysia Issuing House added.

To recap, E.A. Technique expects to raise RM74.1 million through the public issue of 114 million new shares, of which 25.2 million new shares will be made available to the Malaysian public at an offer price of 65 sen per share. The other 78.8 million shares will be allocated for private placement, while the remaining 10 million shares is reserved for the group’s eligible directors and employees.

Upon listing, the group will have a market capitalisation of RM327.6 million.

Of the RM74.1 million proceeds raised, some RM30 million will be used for the repayment of bank borrowings, RM29.2 million for capital expenditures and RM9.9 million for working capital.

E.A. Technique, which is expected to make its debut on the stock exchange next Thursday (Dec 11), operates a total of 31 marine vessels serving the oil & gas industry. It owns 22 vessels; while the remaining 9 vessels are chartered in, from external parties.

As at Oct 31, the group’s order book stands at RM830.7 million, which will last until 2025.