KUALA LUMPUR: Steel Hawk Bhd
’s initial public offering (IPO) has been oversubscribed by 276.83 times ahead of its transfer of listing to the ACE Market of Bursa Malaysia Securities Bhd from the LEAP Market.
The oversubscription rate of 276.83 times ranks as the highest subscription compared to all IPOs in the past 10 years, based on information extracted from the website of Bursa Securities.
In a statement, the oil and gas services and equipment provider said the IPO, part of its listing transfer, involves issuing 134.70 million ordinary shares. This includes a public offering of 90.00 million new shares at an issue price of RM0.15 each.
This represents 18.37% of the enlarged share capital, with RM13.50mil expected to be raised from the public issue. In addition, there is an offer for sale of 44.70 million existing shares by way of private placement to selected investors.
Steel Hawk has received a total of 34,838 applications for 6.81 billion shares with a value of approximately RM1.02bil for the 24.50 million shares allocated to the Malaysian public, representing an overall oversubscription rate of 276.83 times.
As for the public portion, 18,256 applications were submitted for approximately 3.79 billion shares, resulting in an oversubscription rate of 308.40 times.
The 12.25 million shares available for application by eligible directors and employees, as well as persons who have contributed to the success of the company have been fully subscribed.
Meanwhile, the 53.25 million new shares and 44.70 million existing shares made available for application by way of private placement to selected investors have also been fully placed out.
“The incoming proceeds will fuel the group's growth plans and expansion within the O&G industry. This strong market support validates Steel Hawk's capabilities and strategic direction. The group will be well-positioned to capitalise on opportunities in the O&G services and equipment segments, driven by growing demand for more efficient and sustainable solutions,” deputy chairman and executive director Datuk Sharman K. Michael said.
“Part of the proceeds will be utilised to expand our fabrication capacity by constructing our new Teluk Kalung Facility 2. This expansion will significantly increase our output capacity and reduce costs by minimising our reliance on third-party subcontractors.”
Steel Hawk is scheduled to be listed on the ACE Market on Sept 5.
UOB Kay Hian Securities (M) Sdn Bhd is the principal adviser, sponsor, underwriter, and placement agent of the transfer of listing.
