KUALA LUMPUR: Ready-to-assemble furniture products designer and manufacturer, Spring Art Holdings Bhd’s initial public offering (IPO) for the public portion has been oversubscribed by 14.71 times.
The company said a total of 3,751 applications for 326.62 million new shares, valued at RM81.65 million were received from the Malaysian public for 20.78 million new shares that were made available for public subscription.
“The 4.16 million new shares for its eligible Directors and employees, as well as persons who have contributed to the success of the Spring Art group, had also been fully subscribed,” it said in a statement yesterday.
In addition, the placement agent has confirmed that 99.76 million shares were made available for application by way of the private placement to selected Bumiputera investors approved by Ministry of International Trade and Industry (MITI) and selected investors have been fully placed out.
Under the listing exercise, Spring Art has raised RM24.42 million from its public issue of 97.69 million new shares at 25 sen per share of which 20.78 million new shares were made available to the Malaysian public via balloting; 4.16 million new shares for its eligible directors and employees, as well as persons who have contributed to the success of Spring Art while the remaining 72.75 million new shares, are earmarked for private placement to selected Bumiputera investors approved by MITI and selected investors.
As part of its listing exercise, the existing shareholders of the company also made an offer for sale of 27.02 million shares by way of a private placement to selected investors.
Of the total IPO proceeds, RM17.55 million (71.9 per cent) will be used to acquire new machinery to set up two additional production lines for its new manufacturing factory – Factory C.
“It will further utilise RM3.67 million (15 per cent) for general working capital requirements while the remaining RM3.20 million (13.1 per cent) to be used to defray listing expenses for the IPO,” it added.
Spring Art’s listing on the ACE Market of Bursa Securities is scheduled on Nov 8. — Bernama