KUALA LUMPUR (Jan 18): Design-and-build contractor Vestland Bhd said the public portion of the initial public offering (IPO) by the Malaysian public has been oversubscribed by 18.38 times.

A total of 14,227 applications for 914.88 million issue shares worth RM301.91 million were received from the Malaysian public, according to a statement from Vestland, which is scheduled to list on the ACE Market on Jan 31, 2023.

"For the Bumiputera public portion, a total of 7,994 applications for 353,468,000 issue shares were received, which represents an oversubscription rate of 13.97 times. For the other Malaysian public portion, a total of 6,233 applications for 561.42 million issue shares were received, which represents an oversubscription rate of 22.78 times," Vestland said.

Meanwhile, it said 27.745 million issue shares made available for application by the eligible directors, employees and persons who have contributed to the success of the group have also been fully subscribed.

Shares made available for application by way of private placement, totalling 163.84 million shares, have also been fully placed out.

The group’s IPO comprises a public issue of 170 million new shares, as well as an offer for sale of 70.8 million existing shares, at 33 sen apiece. At this price, the group is expected to have a market capitalisation of RM311.6 million upon listing.

It aims to raise RM56.1 million fresh capital from its IPO, of which RM33.5 million (59.71%)  will be used for working capital.

Vestland started as a pure build contractor in 2011, but has since expanded its scope of work to become a design-and-build contractor in 2020. In 2021, the group expanded its business to include civil engineering works.

AmInvestment Bank Bhd is the principal adviser, sponsor, placement agent and underwriter for its IPO.