KUALA LUMPUR: Azam Jaya Bhd’s initial public offering (IPO) has been oversubscribed 23 times, ahead of its listing on the Main Market of Bursa Malaysia Securities Bhd.
In a filing with Bursa Malaysia today, Azam Jaya executive director Datuk Jessica Lo said the oversubscription to the group's IPO affirmed the market’s confidence in its business strategies.
"We are well-positioned to seize new opportunities, which would include enhancing our construction capabilities and expanding our capacity for large-scale projects.
"This would enable us to reach our goal of elevating construction standards in Sabah by introducing innovative techniques and delivering high-quality engineering solutions to meet the region’s growing demands," she said.
The Sabah-based major road infrastructure construction player said the IPO comprises 128.8 million ordinary shares, featuring a public issue of 78.8 million new ordinary shares (issue shares) at RM0.78 per share, representing 15.8 per cent of the enlarged share capital with RM61.5 million expected to be raised.
In addition, there is an offer for the sale of 50.0 million existing shares (offer shares), representing 10.0 per cent of the enlarged share capital, by way of private placement to selected investors.
In respect of the 25.0 million issue shares allocated to the Malaysian public, Azam Jaya received a total of 16,014 applicants for 599,942,800 issue shares with a value of approximately RM467.96 million, representing an overall oversubscription rate of 23.00 times.
For the Bumiputera portion, 8,482 applications for 282,907,200 issue shares were received, representing an overall oversubscription rate of 21.63 times.
As for the Malaysian public portion, 7,532 applicants were submitted for 317,035,600 issue shares, resulting in an oversubscription rate of 24.36 times.
The 10.0 million issue shares available for application by the eligible directors and employees, as well as persons who have contributed to the success of the company have been fully subscribed
The 43.8 million issue shares and 50.0 million offered shares by way of private placement to institutional and selected investors have also been fully placed out.
Notices of allotment will be posted to all successful applicants by Nov 6, 2024.
Azam Jaya is scheduled to be listed on the Main Market of Bursa Securities on Nov 11, 2024.
Inter-Pacific Securities Sdn Bhd is the principal adviser, sole underwriter and sole placement agent for the IPO exercise. - Bernama
