Eversafe Rubber’s IPO oversubscribed 65 times by the public

New high for Dagang NeXchange Bhd

KUALA LUMPUR: Tyre retreading firm Eversafe Rubber Bhd’s initial public offering (IPO) available for the Malaysian public has been oversubscribed by a whopping 64.99 times.

Tricor Investor & Issuing House Services Sdn Bhd (TIIH) said in a statement that 13,194 applications for 824.93 million new shares valued at RM296.97mil were received for the 12.5 million new shares available for subscription.

For the bumiputra portion, a total of 6,773 applications for 388.19 million new shares were received, representing an oversubscription rate of 61.11 times.

Eversafe, which is slated to be listed on April 21 on the Ace Market, is offering 78 million new shares at an issue price of 36 sen per share.

The IPO of 78 million shares comprised a public issue of 48 million shares and an offer for sale of 30 million existing shares, including 24 million shates to be placed to bumiputra investors approved by the International Trade and Industry Ministry.

Based on an IMR report, Eversafe commanded a 22% share of the 2015 market for the development, manufacturing and distribution of tryre retreading materials in Malaysia.

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