KUALA LUMPUR (Jan 10): TT Vision Holdings Bhd, which is en route for a listing on Bursa Malaysia ACE Market, announced that its initial public offering (IPO) of 23.4 million new shares was oversubscribed by 89.15 times by Malaysian investors.

The company’s IPO involves 84.5 million new shares, of which 43 million have been allocated for private placement, plus an offer for sale of 10.5 million shares from existing shareholders.

The machine vision equipment manufacturer said a total of 21,796 applications for 2.11 billion new shares, with a value of RM717.25 million, were received from the Malaysian public for the 23.4 million shares made available.

“For the Bumiputera portion, a total of 11,224 applications for 774.55 million new shares were received, which represents an oversubscription rate of 65.2 times,” it said in a statement.

“For the public portion, a total of 10,572 applications for 1.34 billion new shares were received, which represents an oversubscription rate of 113.1 times.”

TT Vision added that the 18.1 million new 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 43 million new shares, as well as the offer for sale of 10.5 million existing shares in TT Vision 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 17 January 2023,” it said.

KAF Investment Bank Bhd is the principal adviser, sponsor, sole underwriter and sole placement agent for this IPO.

The company aims to raise RM32.3 million, including an offer for sale by existing shareholders for RM3.57 million.

Of the RM28.73 million proceeds expected to be raised from the public issue, TT Vision has earmarked RM10.68 million (37.17%) for working capital and RM8 million (27.85%) for research and development (R&D) expenditure.

Another RM6 million (20.88%) will go towards the repayment of bank borrowings, RM850,000 (2.96%) will be used for marketing activities and RM3.2 million (11.14%) is to defray listing-related expenses.

Based on its enlarged issued share capital of 468 million shares and the issue price of 34 sen apiece, TT Vision will have a market capitalisation of RM159.12 million upon listing.