Ace Market bound Evergreen Max Cash Capital Berhad has received a significant response for its initial public offering exercise, which has been oversubscribed by 53.06 times ahead of its listing.
The group is principally involved in the provision of pawnbroking services and the retail and trading of gold and luxury products as well as pawnbroking consultancy and IT solution services to third-party pawnbrokers.
EMCC’s IPO of 310,600,000 ordinary shares consists of a public issue of 267,600,000 new shares and an offer for sale of 43,000,000 existing shares to selected investors by way of placement. The Group is raising approximately RM64.2 million in proceeds at an IPO price of RM0.24 per share.
The company received a total of 14,568 applications for 3,011,101,300 shares with a value of RM722,664,312 for the 55,700,000 shares allocated to the Malaysian public, representing an overall oversubscription rate of 53.06 times. For the Bumiputera public portion, there were 4,596 applications for 656,830,800 shares, representing an oversubscription rate of 22.58 times. Meanwhile, for the non-Bumiputera public portion, there were 9,972 applications for 2,354,270,500 shares, representing an oversubscription rate of 83.53 times.
The 27,900,000 new shares made available for application by the eligible directors, employees as well as persons who have contributed to the success of EMCC have been fully subscribed.
Meanwhile, the 44,600,000 new shares and 43,000,000 existing shares made available by way of placement to selected investors have also been fully subscribed.
In addition, the 139,400,000 new shares made available by way of placement to selected Bumiputera investors approved by the Ministry of Investment, Trade, and Industry have also been fully placed out.
Notices of allotment will be sent to all successful applicants on or before 22 September 2023.
Executive Director and Group Managing Director of EMCC, Dato’ Low Kok Chuan said, “We are delighted with the strong reception received for our IPO. A large portion of our IPO proceeds will be utilised as cash capital for our pawnbroking business and to open new “Pajaking” pawnshops. This will enable us to garner a larger market share as well as increase our brand visibility,” Dato’ Low concluded.
EMCC is scheduled to be listed on the ACE Market of Bursa Securities on 26 September 2023. Upon listing, it will have a market capitalisation of RM267.6 million based on the IPO price of RM0.24 per share and its enlarged share capital of 1,114,902,499 shares.
Mercury Securities Sdn Bhd is the Principal Adviser, Sponsor, Underwriter and Placement Agent for the IPO exercise.
