PETALING JAYA: GB Bond Holdings Bhd has announced that the public portion of its initial public offering (IPO) has been oversubscribed by 8.22 times, ahead of its scheduled listing on the ACE Market of Bursa Malaysia Securities Berhad on Oct 1.
In a statement, the industrial adhesives, emulsion polymers and sealants manufacturer said it received a total of 5,333 applications for 190.02 million shares from the Malaysian public for the 20.62 million shares made available under the public portion, representing an overall oversubscription rate of 8.22 times.
“For the Bumiputera public portion, GB Bond received 2,241 applications for 67.44 million shares, representing an oversubscription rate of 5.54 times.
“For the other Malaysian public portion, GB Bond received 3,092 applications for 122.58 million shares, representing an oversubscription rate of 10.89 times
GB Bond’s IPO comprises a public issue of 64.30 million new ordinary shares and an offer for sale of 42.88 million existing ordinary shares at an IPO price of RM0.25 per share.
The public issue is expected to raise gross proceeds of approximately RM16.08mil.
Of the proceeds raised, RM5.50mil has been earmarked for the rental of a new factory and purchase of machinery, RM3.50mil for expansion into Vietnam, RM1.18mil for working capital, RM0.90mil for equipment for product formulation, RM0.50mil for marketing expenses and RM4.50mil for estimated listing expenses.
Upon listing, GB Bond will have an enlarged issued share capital of 412.3 million shares, with a market capitalisation of approximately RM103.08mil based on the IPO price of RM0.25 per share.
