Leform Berhad has garnered positive response for its initial public offering exercise, which has been oversubscribed by 1.42 times ahead of its listing on the ACE Market of Bursa Malaysia Securities Berhad.
The Group is principally involved in the manufacturing of and trading in steel pipes, guardrails and flat steel products such as slitted steel coils and sheets.
Leform’s IPO offering of 385,064,000 ordinary shares (“Shares”) entails a public issue of 311,013,000 new Shares and an offer for sale of 74,051,000 existing Shares. The Group is raising RM71.5 million in proceeds at an issue price of RM0.23 per share. It received a total of 5,285 applications for 179,510,300 Shares with a value of approximately RM41.3 million for the 74,051,000 Shares allocated to the Malaysian public, representing an oversubscription rate of 1.42 times.
- For the Bumiputera public portion, a total of 2,747 applications for 59,428,700 Shares were received, translating to an oversubscription rate of 0.61 times. The non-Bumiputera public portion saw a total of 2,538 applications for 120,081,600 Shares were received, representing an oversubscription rate of 2.24 times.
The 29,620,000 Shares available for application by the eligible directors and employees, and persons who have contributed to the success of the Group have been fully subscribed.
Meanwhile, the private placement of 207,342,000 Shares, involving 22,215,000 Shares for identified institutional and/or selected investors along with 185,127,000 Shares for identified Bumiputera investors approved by the Ministry of International Trade and Industry, Malaysia have also been fully placed out.
Notices of allotment will be posted to all successful applicants before 30 November 2022.
The company is slated to be listed on the ACE Market of Bursa Securities on 30 November 2022. Upon listing, Leform will have a market capitalisation of RM340.6 million based on the issue price of RM0.23 and its enlarged share capital of 1,481,013,000 Shares.
MIDF Amanah Investment Bank Berhad is the Principal Adviser, Sponsor, Sole Underwriter, and Sole Placement Agent for Leform’s IPO exercise.
