KUALA LUMPUR: Evergreen Max Cash Capital Bhd, which is scheduled for a listing on the ACE Market of Bursa Malaysia on Sept 26, has seen its initial public offering (IPO) oversubscribed by 53.06 times.
The pawnbroker received a total of 14,568 applications for 3.01 billion shares with a value of RM722.6 million for the 55.70 million shares allocated to the Malaysian public, representing an overall oversubscription rate of 53.06 times.
For the Bumiputera public portion, there were 4,596 applications for 656.83 million shares, representing an oversubscription rate of 22.58 times.
"For the non-Bumiputera public portion, there were 9,972 applications for 2,354,270,500 shares, representing an oversubscription rate of 83.53 times.
"The 27,900,000 new shares made available for application by the eligible directors, employees as well as persons who have contributed to the success of the company have been fully subscribed," Evergreen Max said in a statement.
Executive director and group managing director Datuk Low Kok Chuan said this demonstrates the positive market response towards its fundamentals and attractive industry prospects.
With the incoming proceeds, Low said the company is set to accelerate its growth plans and further expand our operations in the pawnbroking industry.
"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," he said.
Upon listing, Evergreen Max will have a market capitalisation of RM267.6 million based on the IPO price of 24 sen per share and its enlarged share capital of 1.11 billion shares.
Mercury Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.