KUALA LUMPUR: ACE Market-bound Northeast Group Bhd's issue of 37 million shares to the Malaysian public has been oversubscribed by 73.42 times, according to the Malaysian Issuing House Sdn Bhd.
In a statement, the issuing house said a total of 29,702 applications for 2.75 billion issue shares with a value of RM1.38bil were received from the Malaysian public for the public portion of the initial public offering (IPO).
In its breakdown, it said 14,238 applications for 1.1 billion issue shares were received for the Bumiputera portion for an oversubscription rate of 58.49 times.
A total of 15,464 applications for 1.65 billion issue shares were received for the other Malaysian public portion, for an oversubscription rate of 88.36 times.
Additionally, the 29.6 million issue shares made available for application by the eligible directors and employees as well as business associates who have contributed to the success of the group have been fully subscribed.
Affin Hwang Investment Bank Bhd, the principal adviser, sponsor, sole placement agent and sole underwriter, has confirmed that 154.19 million IPO shares made available for private placement to selected investors and identified Bumiputera investors approved by the Ministry of Investment, Trade and Industry have also been fully placed out.
The notices of allotment will be mailed to all successful applicants by Oct 15, 2024.
Northeast's IPO offered investors a 29.84% stake in the enlarged share capital of the company.
At its issue price of 50 sen a share, the company will have a market capitalisation of RM370mil upon its listing.
