IT infrastructure and cybersecurity solution provider, Infoline Tec Group Berhad, has received a boost in confidence on its impending listing on the ACE market when the shares were oversubscribed by 60.90 times.
The IPO entails a public issue of 74,000,000 new ordinary shares in Infoline Tec at an issue price of RM0.32 per Issue Share, representing 20.38% of its enlarged share capital, raising approximately RM23.68 million and an offer for sale of 22,250,000 existing shares by way of private placement to selected investors.
Infoline Tec has received a total of 10,630 applications for 1,124,202,400 Issue Shares with a value of RM359.74 million from the Malaysian Public for 18,162,000 Issue Shares, representing an oversubscription rate of 60.90 times.
For the Bumiputera public portion, a total of 4,829 applications for 362,557,900 Issue Shares were received, representing an oversubscription rate of 38.92 times; and the remaining public portion, a total of 5,801 applications for 761,644,500 Issue Shares were received, translating to an oversubscription rate of 82.87 times.
8,269,000 Issue Shares made available for application by the eligible directors and employees as well as persons who have contributed to the success of Infoline Tec and its subsidiaries (“Group”) have been fully subscribed.
2,165,300 Issue Shares and 22,250,000 Offer Shares made available by way of private placement to selected investors have also been fully placed out.
In addition, 45,403,700 Issue Shares made available by way of private placement to Bumiputera investors approved by the Ministry of International Trade and Industry, Malaysia have been fully subscribed.
Chief Executive Officer Choo Wei Chuen commented, “the positive response received for our IPO as it reflects the market’s confidence towards Infoline Tec’s business fundamentals and growth prospects. Moving forward, demand for IT infrastructure and cybersecurity solutions will continue to grow in tandem with the rapid adoption of digital technologies for personal and business uses.”
The company plans to apportion blk of the IPO proceeds to enhance its existing Network Operation Centre and to set up a Security Operations Centre, technology centre, and disaster recovery centre. Along with the upgrades of its hardware and software IT infrastructures.
Infoline Tec is slated to be listed on the ACE Market of Bursa Securities on 13 July 2022. Upon Listing, the company will have a market capitalisation of RM116 million based on the IPO price of RM0.32 per IPO Share and its enlarged share capital of 363,229,120 Shares.
MIDF Amanah Investment Bank Berhad is the Principal Adviser, Sponsor, Underwriter and Placement Agent for the IPO exercise.
