KUALA LUMPUR (Jan 6): Wellspire Holdings Bhd, which is involved in the distribution of consumer-packaged foods in Thailand, said its initial public offering (IPO) was oversubscribed by 11.24 times by the Malaysian public, ahead of its listing on Bursa Malaysia’s ACE Market on Jan 16.

The group said it received a total of 7,727 applications for 440.67 million shares, with a value of RM101.35 million, of the 36 million shares made available to the Malaysian public.

“For the Bumiputera portion, a total of 3,628 applications for 126.88 million public issue shares were received, which represents an oversubscription rate of 6.05 times,” the company said in a statement. 

“For the public portion, a total of 4,099 applications for 313.79 million public issue shares were received, which represents an oversubscription rate of 16.43 times.”

Wellspire added that the 10 million shares available for application by eligible directors and employees, as well as persons who have contributed to the success of the group, were also fully subscribed to.

Meanwhile, it said that the 78.6 million news shares, as well as the offer for sale of 124.6 million existing shares in Wellspire by way of private placement to selected investors, have been fully placed out.

“The notices of allotment will be posted to all successful applicants on or before Jan 13,” Wellspire said. 

The company aims to raise approximately RM28.66 million from its IPO, of which RM16 million will be utilised for the acquisition or construction of a warehouse and operational facilities in Thailand, and RM5.96 million for working capital. Another RM6.7 million will be allocated to defray listing expenses.

Based on its enlarged issued share capital of approximately 712.13 million shares and IPO price of 23 sen per share, the company will have a market capitalisation of approximately RM163.79 million upon listing. 

TA Securities Holdings Bhd is the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO exercise.