Good response to Matrix Concepts’ IPO with 11.3 times oversubscription

KUALA LUMPUR: Matrix Concepts Holdings Bhd (Matrix Concepts) has received an overwhelming response for its Initial Public Offering (IPO) on the Main Market of Bursa Malaysia Securities Bhd with its public tranche oversubscribed by 11.3 times.

Matrix Concepts received a total of 12,043 applications for 123.2 million shares with a total value of RM270.9 million for the public tranche of 10.0 million new shares of the IPO.

“The public’s favour towards our IPO signifies the investing community’s confidence in our capability to tap into the growth opportunities of the Greater Klang Valley conurbation that includes Seremban as a satellite city,” highlighted the group’s chairman, Datuk Mohamad Haslah Mohamad Amin in a press release yesterday.

“We believe that our upcoming listing on the Main Market of Bursa Malaysia will not only take us to a whole new dimension in our corporate history as we embark on a journey as a listed entity; but also help us gain even more confidence from our property purchasers.”

Since its inception in 1997, Matrix Concepts has garnered a track record of developing residential, commercial, and industrial real estate in Negeri Sembilan and Johor worth more than RM2.0 billion. Matrix Concepts is also the developer of Bandar Sri Sendayan, its flagship township development in Seremban, Negeri Sembilan. Spanning 5,233 acres with an estimated Gross Development Value (GDV) of RM5 billion, Bandar Sri Sendayan has the potential to be the next growing residential enclave in Negeri Sembilan.

“We aim to make Bandar Sri Sendayan the preferred address to stay, work, and play, synonymous with the finer lifestyle appreciated by the increasingly-discerning community in Seremban. With an expected catchment population of more than 100,000 people upon full completion, Bandar Sri Sendayan is poised to become a thriving and vibrant hub in the years to come,” said Mohamad Haslah.

Matrix Concepts’ IPO entails a public issue of 62.5 million new ordinary shares and an offer-for-sale of 37.5 million vendor shares, at an issue price of RM2.20 per share.

Of the public issue of 62.5 million new ordinary shares, 10 million are allocated for public balloting; 8.8 million for eligible directors, employees and business associates of the Group and the remaining 43.7 million shares made available for private placement to selected investors.

As for the 37.5 million vendor shares, 32.5 million shares will be allocated for Bumiputera investors approved by the Ministry of International Trade and Industry, while five million shares will be for private placement to selected investors.

Matrix Concepts’ IPO would raise RM137.5 million in proceeds for the Group, of which RM55.0 million will be allocated for the construction of infrastructure and common facilities at Bandar Sri Sendayan, another RM55 million for working capital, followed by RM10 million for the construction of the 1Sendayan Clubhouse at the flagship township.

The remaining RM11 million and RM6.5 million will be used for repayment of bank borrowings and listing expenses respectively.

Matrix Concepts is slated to be listed on Bursa Malaysia’s Main Market on May 28, 2013.

“We would also like to extend our gratitude to Hong Leong Investment Bank Berhad and Kenanga Investment Bank Berhad for helping us to make our IPO a great success,” concluded the chairman.

Hong Leong Investment Bank Bhd is the principal adviser, managing underwriter, co-underwriter and co-placement agent for the IPO, while Kenanga Investment Bank Bhd is the co-underwriter and co-placement agent.

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