KUALA LUMPUR: Agricore CS Holdings Bhd's initial public offering (IPO) has been oversubscribed by 130.39 times.
In a statement, the company said a total of 15,302 applications for 1.13 billion shares were received.
The Bumiputera public portion of shares was oversubscribed by 113.57 times, after a total of 8,594 applications for 580.88 million new shares received.
For the non-Bumiputera public portion, a total of 6,710 applications for 757.54 million new shares were received, with an oversubscription rate of 148.42 times.
Meanwhile, the 10.14 million new shares for its eligible directors, employees and persons who have contributed to the success of Agricore Group was fully subscribed.
In addition, 31.43 million shares made available for application by way of private placement to Bumiputera investors approved by the Investment, Trade and Industry and selected investors have been fully placed out.
"The IPO proceeds are crucial for us to increase our inventory levels to support our business growth. Through higher inventory levels, the company will be able to drive its revenue growth by increasing its sales volume to the existing customers as well as securing new customers.
"With the ongoing growth and expansion of our business, the IPO proceeds will also be used to increase our storage capacity by setting up a new regional storage facility in Klang, Selangor, with a built-up area of 30,000 sq ft," said Agricore managing director Oon Boon Khong.
Currently, all Agricore's plant-based agricultural products are stored in the Bukit Minyak premises prior to delivery to the customers.
The utilisation rates of the storage space at Bukit Minyak were recorded at an average of 91.1 per cent for the financial year ended Dec 31, 2020 (FY20).
Agricore is scheduled to list on the ACE Market on June 21, 2024, and aims to raise RM25.86 million from its IPO.
Under the listing exercise, Agricore is issuing 51.71 million new shares representing 25.5 per cent of the enlarged share capital at an issue price of RM0.50 per share.