ACE market-bound Econframe receives strong response for its IPO

TOTAL door system solution provider Econframe Bhd which is en route to a listing on the ACE Market of Bursa Malaysia has garnered strong interest for its initial public offering (IPO) by being oversubscribed 40.23 times.

The company’s listing exercise entails a public issue of 65 million new shares and an offer for sale of up to 32.5 million existing shares at an issue price of 28 sen per share. Econframe will raise about RM18.2 mil from its IPO exercise.

Econframe received a total of 11,827 applications for 670.02 million new shares with a value of RM187.61 mil from the public for 16.25 million new shares, thus representing an oversubscription rate of 40.23 times.

As for the Bumiputera portion, a total of 6,105 applications for 297.6 million new shares were received, translating to an oversubscription rate of 35.63 times.

For the remaining public portion, a total of 5,722 applications for 372.42 million new shares were received, representing an oversubscription rate of 44.84 times.

Elsewhere, the 3.25 million new shares available for eligible directors and employees have also been fully subscribed.

Likewise, the private placement of 13 million new shares to selected investors as well as 32.5 million new shares to identified Bumiputera investors approved by the Ministry of International Trade and Industry (MITI) Malaysia have also been fully subscribed.

“The offer for sale of 32.5 million existing shares have all been fully placed out,” Econframe said in a statement. “The notices of allotment will be posted to all successful applicants on or before Oct 22.”

Part of the proceeds raised will be utilised to expand the company’s production capabilities to include wooden doors, according to the company’s group managing director Lim Chin Horng.

“With an improved manufacturing workflow and upgraded manufacturing technology, our annual operating capacity is expected to be improved by 35% for both our metal door frames and fire resistant door sets,” he added.

Econframe which is slated for listing on Oct 27 will have market capitalisation of RM91 mil based on the issue price of 28 sen and an enlarged share capital of 325 million shares. – Oct 15, 2020

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