ACE Market-bound Minox's IPO oversubscribed by 143.76 times

KUALA LUMPUR: Minox International Group Bhd has garnered a robust response for its initial public offering (IPO), which has been oversubscribed by 143.76 times ahead of its listing on the ACE Market of Bursa Malaysia Securities Bhd.

This represented the fourth-highest oversubscription rate out of the 27 IPOs so far in 2023.

This distributor of stainless steel sanitary valves, tubes and fittings said 15,818 applications have been received for approximately 2.6 billion shares with an approximate value of RM651.4 million for the 18.0 million shares allocated to the Malaysian public.

The Bumiputera public portion was oversubscribed by 126.29 times after a total of 8,849 applications for approximately 1.1 billion shares were received.

"As for the other Malaysian public category, 6,969 applications were submitted for approximately 1.5 billion Shares, resulting in an oversubscription rate of 161.22 times,” it said in a statement today.

Meanwhile, the 10.8 million shares for eligible directors, employees and persons who have contributed to the success of Minox have also been fully subscribed.

Minox said the private placement of 16.2 million new shares and 18.0 million existing shares made available to selected investors, and the 45.0 million shares offered through private placement to selected Bumiputera investors approved by the Ministry of Investment, Trade, and Industry both have been fully placed out.

"Notices of allotment will be dispatched to all successful applicants no later than Oct 13, 2023,” it said.

Set to be listed on Oct 17, Minox’s market capitalisation will be RM90 million, based on the issue price of RM0.25 per share and its enlarged share capital of 360 million shares.

Minox managing director Cheong Chee Son said the strong demand from investors reinforced the company’s commitment to deliver value to its shareholders., said its managing director Cheong Chee Son.

"It gives us a boost in confidence as we execute our three-pronged growth strategy to capitalise on the opportunities in the growing sanitary valves and fittings industry,” he added.

M & A Securities Sdn Bhd is the advisor, sponsor, underwriter and placement agent for the IPO exercise. - Bernama