Ecoscience's IPO oversubscribed by 7.23 times
KUALA LUMPUR: Ecoscience International Bhd, which is slated for a listing on the ACE Market of Bursa Malaysia on July 18, said its initial public offering (IPO) has been oversubscribed by 7.23 times.
“Ecoscience has received a total of 3,908 applications for 139.89 million shares with a value of approximately RM42mil for the 17 million shares allocated to the Malaysian public, representing an oversubscription rate of 7.23 times,” the integrated palm oil milling services provider said in a statement.
It said the Bumiputera public portion was oversubscribed by 6.03 times, after a total of 2,187 applications for 59.73 million shares were received.
For the non-Bumiputera public portion, a total of 1,721 applications for 80.16 million shares were received, representing an oversubscription rate of 8.43 times.
The 6.8 million shares available for application by the eligible directors and employees, and persons who have contributed to the success of Ecoscience have been fully subscribed.,
“The enthusiastic response we received for our IPO reflects the public’s belief in the fundamentals and prospects of Ecoscience. With the funding secured, we are now ready to execute our expansion plans and capitalise on the growth opportunities available in the palm oil industry,” managing director Wong Choi Ong said.
“Among the plans include the incorporation of a wholly-owned subsidiary as well as the establishment of a new fabrication facility and office in Indonesia. As it is the world’s largest palm oil producer, the opportunities there are rife.
“Once operational, we believe the enhanced market presence will increase our odds of landing new contracts in the country as we will be better positioned to serve our Indonesian customers,” he added.
Upon listing, Ecoscience will have a market capitalisation of RM102mil based on the issue price of 30 sen and its enlarged share capital of 340 million shares.
Hong Leong Investment Bank Bhd is the principal adviser, sponsor, underwriter, and placement agent for the IPO exercise.