KUALA LUMPUR: Econframe Bhd’s offer of 16.25 million new shares at 28 sen each to the public under its listing exercise was oversubscribed by 40.23 times.
The total door system solution provider said in a statement on Thursday it received 11,827 applications for 670.02 million new shares with a total value of RM187.60mil.
Econframe is seeking to list on the ACE Market of Bursa Malaysia Securities Bhd on Oct 27
The listing exercise entailed a public issue of 65 million new ordinary shares where it will raise about RM18.20mil. The vendors also offered for sale of up to 32.50 million existing shares.
It also said the 3.25 million new shares available for eligible directors and employees have been fully subscribed.
The private placement of 13 million new shares to selected investors and 32.50 million new shares available to identified Bumiputera investors have also been fully subscribed.
Econframe’s group managing director Lim Chin Horng said the company was encouraged by the strong response to the IPO and market confidence in its growth prospects. S
“Part of the proceeds raised will be utilised to expand our production capabilities to include wooden doors. Producing wooden doors in-house will enable us to have better control on the costs while reducing reliance on third party suppliers, ” he said.
Lim added Econframe would expand its capacity by building a larger factory. It plans to buy a piece of land for the expansion of its production and house all its facilities under one roof.
“The new factory will be equipped with advanced robotic technology to boost operational efficiency.
“With an improved manufacturing workflow and upgraded manufacturing technology, our annual operating capacity is expected to be improved by 35% for both our metal door frames and fire-resistant door sets, ” he added.
Upon listing, Econframe will have market capitalisation of RM91mil based on the issue price of 28 sen and its enlarged share capital of 325 million shares.
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