PETALING JAYA: Ace Market bound Evergreen Max Cash Capital Berhad initial public offering (IPO) oversubscribed 53,06 times ahead of its listing.
Evergreen Max Cash is a pawnbroking business service including the retail and trading of gold and luxury products as pawnbroking consultancy and IT solution services to third-party pawnbrokers, as reported by Business Today (BT).
The business portal reported that EMCC’s IPO of 310,600,000 ordinary shares consists of a public issue of 267,600,000 new shares and an offer for sale of 43,000,000 existing shares to selected investors by way of placement and the Group is also reportedly raising RM64.2 million in proceeds at an IPO price of RM0.24 per share.
Apart from that, the group also had received a total of 14,568 applications for 3,011,101,300 shares with a value of RM722,664,312 for the 55,700,000 shares allocated to the Malaysian public, representing an overall oversubscription rate of 53.06 times.
There were 4,596 applications for 656,830,800 shares for the Bumiputera public portion, with an oversubscription rate representation of 22.58 times.
On the other hand, there were 9,972 applications for 2,354,270,500 shares, representing an oversubscription rate of 83.53 times for the non-Bumiputera portion.
It was further reported that the 27,900,000 new shares are made available for application by those who have contributed to the success of EMCC, its eligible directors and employees.
It is also learnt that the 44,600,000 new shares and 43,000,000 existing shares made available by way of placement to selected investors have also been fully subscribed.
Additional new shares amounting to 139,400,000 by way of placement to selected Bumiputera investors that received approval from the Ministry of Investment, Trade and Industry (MITI) have also been fully placed out.
BT also reported that the notices of allotment are expected to be sent to all successful applicants on or before Sept 22.
Executive Director and Group Managing Director of EMCC, Datuk Low Kok Chuan was quoted saying, “We are delighted with the strong reception received for our IPO. A large portion of our IPO proceeds will be utilised as cash capital for our pawnbroking business and to open new “Pajaking” pawnshops. This will enable us to garner a larger market share as well as increase our brand visibility.”
On Sept 26, EMCC is scheduled for a listing on the Ace Market of Bursa Securities.
With its listing, EMCC will have a market capitalisation of RM267.6 million based on the IPO price of RM0.24 per share and its enlarged share capital of 1,114,902,499 shares.
Mercury Securities Sdn Bhd is the Principal Adviser, Sponsor, Underwriter and Placement Agent for the IPO exercise.
