2 months ago
16 
PETALING JAYA: Econframe Bhd has seen strong interest by investors as its initial public offering (IPO) has been oversubscribed by 40.23 times ahead of its Bursa Malaysia’s ACE Market listing.
For the exercise, Econframe has received a total of 11,827 applications for 670.02 million new shares with a value of RM187.6 million from the Malaysian Public for the 16.25 million new shares.
Its bumiputra portion saw 6,105 applications for 297.61 million new shares were received, which translated to an oversubscription rate of 35.63 times, while the remaining public portion saw 5,722 applications for 372.42 million new shares, which is an oversubscription rate of 44.84 times.
On the other hand, 3.25 million new shares allocated for eligible directors and employees have been fully subscribed.
The private placement of 13 million new shares available to selected investors as well as 32.5 million new shares available to identified bumiputra investors approved by the International Trade and Industry Ministry have also been fully subscribed.
Furthermore, the offer for sale of 32.5 million existing shares have also all been fully placed out.
Managing director Lim Chin Horng commented that he is encouraged by the strong response and market confidence towards the group’s growth prospect.
“Since our establishment 19 years ago, we have since built up a resilient business with strong foundation and solid fundamentals,” he said in a statement.
The group’s IPO entailed a public issuance of 65 million new ordinary shares and an offer sale of up to 32.5 million existing shares at an issue price of 28 sen per share. From the public issuance, it will raise an estimated RM18.2 million.
Notice of allotment will be posted to successful applicants before Oct 22.
Lim stated that part of the proceeds will be utilised to expand Econframe’s production capabilities to include wooden doors, which will translate to better control on cost while reducing reliance on third party suppliers.
The group also intends to acquire a piece of land and construct a manufacturing plant to house all of its facilities under one roof.
The managing director stated that the new factory will be equipped with advanced robotic technology to boost operational efficiency.
Econframe is slated to make its ACE Market debut on Oct 27.
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