Unitrade Industries Berhad is reported to have garnered positive response for its initial public offering, of which the Malaysian Public portion has been oversubscribed by 2.35 times ahead of listing on the ACE Market of Bursa Malaysia Securities.
Unitrade is slated to be listed on the ACE Market of Bursa Securities on 14 June 2022. Upon listing, Unitrade will have a market capitalisation of RM500 million based on the issue price of RM0.32 and its enlarged share capital of 1,562,500,000 shares.
The homegrown building materials wholesaler cum distributor’s listing entails a public issue of 312,500,000 new ordinary shares at an issue price of RM0.32 per share, representing approximately 20.0% of the enlarged share capital, raising RM100.0 million, along with the offer for sale of 125,000,000 existing shares (Offer Shares) by way of private placement to selected investors.
Unitrade has received a total of 7,169 applications for 261,950,800 Shares with a value of RM83.8 million from the Malaysian Public for the 78,125,000 Shares, representing an oversubscription rate of 2.35 times.
- For the general public portion, a total of 3,684 applications for 39,062,500 Shares were received, translating to an oversubscription rate of 3.90 times; For the remaining Bumiputera public portion, a total of 3,485 applications for 39,062,500 Shares were received, representing an oversubscription rate of 0.81 times.
The notices of allotment will be posted to all successful applicants on or before 14 June 2022.
“We are pleased with the positive response as it reflects the market’s healthy interest and confidence in our business model and growth prospects. Looking ahead, we are confident in maintaining our positive growth momentum, driven by the rising construction activities and acceleration of large-scale infrastructure projects in the pipeline,” Managing Director of Unitrade, Mr. Nomis Sim Siang Leng said.
“With that in mind, the listing comes at an opportune time as we will deploy a large portion of our IPO proceeds as working capital to enhance our inventories range and products mix to meet the increasing demand for building materials. As a wholesaler and distributor, the additional working capital is essential for us to fuel our future growth. By tapping into the equity capital market, it allows us to achieve just that without incurring additional interest expenses,” he added.
M & A Securities Sdn Bhd is appointed as the Advisor, Sponsor, Underwriter and Placement Agent for the IPO exercise.
