Strong demand for Kejuruteraan Asastera IPO shares

KUALA LUMPUR: Kejuruteraan Asastera Bhd's public offer of 16 million new shares at 25 sen each was oversubscribed by 57.33 times.

The electrical engineering services company said on Thursday there were 9,998 applications for 933.28 million new shares valued at RM233.32mil from the Malaysian public.

Its initial public offer of up 112 million shares comprised of a public issue of 80 million new shares and offer for sale of up to 32 million existing shares.

Kejuruteraan Asastera's plan to list on the Ace Market was to raise RM20mil from the issuance of the 80 million new shares. 

Of the 80 million new shares, 16 million units were be offered for sale to the public, eight million to the directors and eligible employees and 56 million shares were placed out.

The company had earlier stated that of the RM20mil to be raised from the sale of new shares, it will use RM12.10mil for working capital of which RM7.50mil would be for projects costs, RM2.60mil for purchase of materials and components and RM2mil for human resources.

Another RM2.20mil would be for capital expenditure, RM1.60mil for repayment of borrowings and RM3.50mil for listing expenses.

It plans to expand its market share by tending for affordable housing projects, strengthen its capabilities for mechanical engineering services and providing maintenance services.

Kejuruteraan  Asastera said electrical engineering services is its core business and accounted for 87.5% of its its revenue in 2014 while for 2015 it was 92.9% in 2015 while for 2016, it was 87.2%.