KUALA LUMPUR: Spring Art Holdings Bhd’s initial public offering (IPO) of 20.78 million new shares for the public was oversubscribed by 14.71 times.
The ready-to-assemble furniture products designer and manufacturer said on Thursday there were 3,751 applications for 326.62 million new shares, valued at RM81.65mil.
The 4.16 million new shares for eligible directors and employees were fully subscribed.
It said the placement agent confirmed 99.76 million shares to be placed out to selected Bumiputera investors were fully placed out.
Spring Art managing director Jack Lim Kok Eng the positive response was a good start for the company especially the marketability of the shares and confidence in its performance over the long haul.
“We are certainly encouraged by the response although our opening period was only seven market days, which is a testimony to the public’s confidence in Spring Art’s business model, ” he said.
Under the listing exercise, Spring Art raised RM24.42mil from its public issue of 97.69 million new shares at 25 sen per share.
As part of its listing exercise, the existing shareholders offered for sale 27.02 million shares to selected investors.
Of the total IPO proceeds, RM17.55mil (71.9%) will be used to buy machinery to set up two additional production lines for its new factory.
It will also use RM3.67mil (15.0%) for general working capital and the remaining RM3.20mil 13.1%) to defray listing expenses for the IPO.
Spring Art’s listing on the ACE Market of Bursa Securities is tentatively scheduled for Nov 8.
M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for the IPO exercise.
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