KUALA LUMPUR: Liftech Group Bhd's initial public offering (IPO) has been oversubscribed by 18.92 times ahead of its listing on the ACE Market of Bursa Malaysia Securities Bhd.
In a statement, the industrial lifting and handling equipment specialist said a total of 5,636 applications seeking 314.79 million new shares were received from the Malaysian public for 15.8 million new shares that were made available for public subscription.
The Bumiputera portion received 2,960 applications for 161.55 million shares, representing an oversubscription rate of 19.45 times.
The other Malaysian public portion received 2,676 applications for 153.24 million shares, translating into an oversubscription rate of 18.40 times.
Meanwhile, the 7.24 million shares allocated to eligible directors and employees were fully subscribed.
In addition, its placement agent has confirmed that the 72.0 million shares made available for application by way of private placement to Bumiputera investors approved by the Ministry of Investment Trade and Industry (MITI) and selected investors have been fully placed out.
Liftech managing director Bernard Ng said that the RM23mil raised from the IPO provides the company with the resources to accelerate its next phase of growth.
“The proceeds will support the expansion of our production capabilities, enhance project execution capacity, and enable us to capitalise on larger opportunities across Malaysia's industrial and infrastructure sectors,” he added.
Under the listing exercise, Liftech expects to raise RM23mil from its public issue of 79.23 million new shares at an issue price of 29 sen per share.
Based on the enlarged share capital of 314.94 million shares, the total market capitalisation of Liftech upon listing would be RM91.33mil.
The company’s listing on the ACE Market is scheduled on June 30.
M & A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for the IPO, while Wyncorp Advisory Sdn Bhd is the corporate finance adviser.
