Dreamgate share offering 62.5 times oversubscribed


  • Business
  • Saturday, 03 Jan 2004

THE 5.428 million Dreamgate Corp Bhd initial public offer (IPO) allocated to the public has been oversubscribed by 62.5 times.  

The portion attracted an impressive 55,024 share applications with a total value of RM172.37mil. 

Dreamgate, with its wholly-owned subsidiaries providing a wide range of technology-based products and services to the leisure and amusement industry throughout Asia, will make its debut on the KLSE Mesdaq market on Jan 13. 

“We are confident our upcoming listing on the Mesdaq market will bode well for us as a group,” its director Chuah Kim Chiew said in a statement yesterday. 

Chuah said the recent positive trend in the regional market, especially developing nations, which were achieving unprecedented economic growth meant bright prospects for Dreamgate's business. 

This was especially so as the need for leisure and amusement facilities could only expand with the prospect of higher disposable income, he added.  

“The response to the IPO is encouraging as it shows the public’s confidence in the inherent strengths of the group and the vast growth potential of the leisure and amusement industry both locally and regionally,” he said. 

In conjunction with the listing, the company made a public issue of 74.428 million 10 sen shares priced at 50 sen each. 

Besides the 5.428 million shares offered to the public, 6 million were reserved for eligible employees and directors, and 63 million for identified placees. 

Dreamgate expects to raise RM37mil in total from its IPO, of which a substantial sum would be allocated for its future plans.  

“The company’s listing on Mesdaq will enable us to further expand our earnings stream into overseas markets, increase in-house developed proprietary products and services, higher value-added products, and go into the assembly of new gaming and amusement machines,” he added. 

Dreamgate has been registering profits since 1986. For the six months ended June 30, it reported a pre-tax profit of RM6.94mil. – Bernama 

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