KUALA LUMPUR: Construction company TCS Group Holdings Bhd's offer of 10.8 million new shares of 23 sen to the public was oversubscribed by 33.39 times.
TCS, which is seeking to list on the ACE Market of Bursa Malaysia Securities, said on Tuesday it received 5,825 applications for 371.38 million shares with a value of RM85.42mil for the shares.
The listing exercise entailed a public issue of up to 90 million new shares, representing 25% of its enlarged paid-up shares toraise about RM20.70mil. The vendors offered for sale of up to 18 million existing shares.
TCS said 7.20 million new shares available for eligible persons were fully subscribed. The private placement of 32.40 million new shares and 18 million existing shares to institutional and selected investor were also fully placed out.
Another 39.60 million shares for approved Bumiputera investors were also fully placed out.
The notices of allotment will be posted to all successful applicants on or before 21 July 2020.
TCS Group managing director Datuk Tee Chai Seng said they were very pleased with the positive response to its IPO as it reflects the market’s confidence towards the group’s growth prospects.
“This is indeed an opportune time for us to further strengthen our foothold and capitalise on the opportunities in the construction industry underpinned by the prospective property launches in our clients’ pipeline as well as the implementation of various government measures and economic stimulus packages.
“Moving forward, we will channel our proceeds raised to further strengthen our presence in the high rise, purpose-built and institutional buildings segments, backed by our established track record in building construction projects.
“We also plan to broaden our revenue stream by venturing into infrastructure construction services to include major roads, highways and bridges. To support our expansion plans, we will acquire machinery and equipment such as trucks, excavators and tower cranes, to name just a few, ” he said.
Currently, most of TCS Group’s projects are in the Klang Valley and Negeri Sembilan.
TCS Group is scheduled to be listed on the ACE Market on July 23. Upon listing, it will have a market capitalisation of RM82.80mil based on the issue price of 23 sen per share and its enlarged paid-up of 360 million shares.
RHB Investment Bank is the sole principal adviser, sponsor, sole underwriter and sole placement agent for the IPO.
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