MALAYSIA, 29/10/2024 (Asia News Channels) - Azam Jaya Berhad, an infrastructure company based in Sabah, announced today that its initial public offering (IPO) for its upcoming listing on Bursa Malaysia’s Main Market was oversubscribed 23 times. The strong investor interest reflects high confidence in Azam Jaya’s market approach, according to Executive Director Datuk Jessica Lo.
In a statement, Lo explained, “We are well-positioned to capitalize on emerging opportunities, including growing our road construction capabilities and scaling up for larger projects. This will help us achieve our aim to elevate construction standards in Sabah by implementing innovative techniques and providing high-quality engineering solutions to meet regional demand.”
The IPO comprises 128.8 million ordinary shares, with 78.8 million new shares priced at RM0.78 each, representing 15.8% of Azam Jaya’s enlarged share capital. This issuance is expected to raise RM61.5 million. Additionally, a private placement of 50 million existing shares will be offered to selected investors, making up 10% of the expanded share capital.
Within the portion allocated to the Malaysian public, Azam Jaya received 16,014 applications for 599.9 million shares, equivalent to RM467.96 million, yielding an oversubscription rate of 23 times. The Bumiputera allotment received 8,482 applications for 282.9 million shares, representing an oversubscription rate of 21.63 times. Meanwhile, the public non-Bumiputera portion saw 7,532 applications for 317 million shares, resulting in a 24.36 times oversubscription.
In addition, the 10 million shares set aside for Azam Jaya’s directors, eligible employees, and other key contributors were fully subscribed. The placement of 43.8 million new shares, along with the 50 million existing shares offered to institutional and selected investors, was also fully taken up.
Allocation notices will be sent to successful applicants by November 6, 2024, with Azam Jaya’s Main Market listing on Bursa Malaysia scheduled for November 11, 2024. Inter-Pacific Securities Sdn Bhd is acting as the principal adviser, sole underwriter, and placement agent for the IPO.
--ASIA NEWS CHANNELS