ACE Market-bound integrated engineering supporting services provider Coraza Integrated Technology Bhd has its initial public offering (IPO) for the public portion oversubscribed by 132.5 times.
A total of 26,781 applications seeking 2.86 billion new shares valued at RM800.7 mil were received for the 21.4 mil new shares made available for application by the Malaysian public.
The Bumiputera portion was oversubscribed by 93.7 times with 12,482 applications for 1.01 billion new shares received.
The mainland Penang-based company is scheduled to be listed on Bursa Malaysia on Jan 20.
For the public portion, a total of 14,299 applications for 1.85 billion new shares were received, which represent an oversubscription rate of 171.4 times.
Meanwhile, the 21.4 million new shares for its eligible directors, employees and individuals who have contributed to the success of the Coraza Group have also been fully subscribed.
Additionally, the company y’s placement agent has confirmed that 96.4 million shares made available for application by way of private placement to selected investors have been fully placed out.
“Our prospectus opening period was during the Christmas and year-end holiday season. We are certainly encouraged by the overwhelming response from the public which is a testimony to the public’s confidence in Coraza’s business model and future plans,” commented Coraza’s managing director Lim Teik Hoe.
“The proceeds will enable us to expand our existing manufacturing floor space in anticipation of a strong demand for our services.
“It will also enable us to part finance the construction of a new factory adjacent to our existing factory in Nibong Tebal to expand our production capacity and service offerings to take advantage of the rapid growth in the semiconductor industry.”
With the extension of existing factory and construction of a new factory, Lim expects Coraza to purchase new machinery over the next three years to increase the company’s sheet metal fabrication capacity.
Under the listing exercise, Coraza is expected to raise RM33 mil from its public issue of 117.8 million new shares at an issue price of 28 sen per share.
The listing also includes an offer for sale of 21.4 million existing shares to selected investors by way of private placement.
Based on the enlarged share capital of 428.3 million shares, the total market capitalisation of Coraza upon its listing would be RM119.9 mil.
M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for the IPO exercise. – Jan 10, 2022
