Multi-Purpose Holdings Bhd's spin-off MPHB Capital Bhd
saw its share price surge 45 sen to RM1.45 at the start of trade on Friday.
MPHB Cap, which was listed on the Main Market of Bursa Malaysia, had its offer price at RM1 per share
MPHB had undertaken a corporate exercise to list its non-gaming assets.
The IPO comes at the heels of a successful renounceable offer for sale of 715 million shares in MPHB Capital by Multi-Purpose Holdings Bhd to the shareholders of MPHB on the basis of one MPHB Capital share for two MPHB shares held.
The total gross proceeds of RM715mil less IPO expenses will be used for a capital repayment exercise of about 48 sen per MPHB share held within three and a half months.
The IPO was oversubscribed by 1.38 times based on the offer shares available to MPHB shareholders.
MPHB Capital chairman Tan Sri Yahya Awang said: "The IPO has received strong support from shareholders, a reflection of the trust and confidence in the ability of the management team.
"Going forward, we believe that we will be able to unlock value for our shareholders and enhance their returns in the near future."
The listing of MPHB Capital was to demerge the financial services and other investments from the gaming business of MPHB to improve the operational and financial efficiency of the businesses.
MPHB Capital, predominantly a general insurance company, targets to be among the top 10 general insurance provider in Malaysia by the end of 2015. It is now ranked 13th.
In May 2012, MPHB said it would divest its non-gaming assets and businesses to MPHB Capital for RM905.3mil to be satisfied by RM190.3mil in cash and 715 million new shares, which have been offered for sale to shareholders of MPHB.
Upon completion of the share sale, MPHB will carry out a capital repayment exercise where the net proceeds of the share sale would be paid out to shareholders.
Following the listing of MPHB Capital, MPHB will submit its application to change its name to Magnum. The change of name could take up to a week.
Below is the earlier story:
KUALA LUMPUR: Multi-Purpose Holdings Bhd's spin-off MPHB Capital Bhd saw its share price surge 45 sen to RM1.45 at the start of trade on Friday.
MPHB Cap, which was listed on the Main Market of Bursa Malaysia, had its offer price at RM1 per share
MPHB had undertaken a corporate exercise to list its non-gaming assets,
In May 2012, MPHB said it would divest its non-gaming assets and businesses to MPHB Capital for RM905.3mil to be satisfied by RM190.3mil in cash and 715 million new shares, which have been offered for sale to shareholders of MPHB.
Upon completion of the share sale, MPHB will carry out a capital repayment exercise where the net proceeds of the share sale would be paid out to shareholders.
Following the listing of MPHB Capital, MPHB will submit its application to change its name to Magnum. The change of name could take up to a week.
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