Pawnshop operator Pappajack's IPO oversubscribed 22 times

Pappajack Bhd executive director Law Book Ching (Left) and Pappajack managing director and CEO Lim Boon Hua (right).

KUALA LUMPUR: Pawnbroking company Pappajack Bhd, en route for a listing on the ACE Market of Bursa Malaysia, has garnered an overall oversubscription rate of 21.73 times for 33.4 million public issue shares made available for application by the Malaysian public.

A total of 7,125 applications for 759 million public issue shares with a value of RM227.75 million were received from the Malaysian public.

"For the Bumiputera portion, a total of 2,243 applications for 116,687,800 public issue shares were received, which represents an oversubscription rate of 5.99 times,” it told the stock exchange. "For the public portion, a total of 4,882 applications for 642 million shares were received, which represented an oversubscription rate of 37.47 times.”

It said the 6.68 million public issue shares made available for application by eligible persons have been fully subscribed.

The company said 83.50 million public issue shares made available by way of private placement to Bumiputera investors and 43.42 million shares to selected investors have been fully placed out.

The first licensed pawnbroking company to be listed on the ACE Market come April 1, 2022, it is planning to raise RM50.10 million from its initial public offering (IPO) at 30 sen per share.

Of the total proceeds, it said RM19.22 million will be allocated for the expansion of its new pawnbroking outlets in Peninsular Malaysia, RM27.08 million for cash capital to existing pawnbroking outlets while the remaining RM3.8 million will be utilised to defray listing expenses. - Bernama