Wentel Engineering which is scheduled for an Ace Market listing saw its IPO shares being oversubscribed by 17.72 times after it received an overwhelming 10,430 applications for 1,076,196,700 issued shares.
The made the valuation hit a record RM279 million for the engineering company. For the Bumiputera portion, a total of 6,016 applications for 407,176,800 Issue Shares were received, which represents an oversubscription rate of 13.16 times. While for the public portion, a total of 4,414 applications for 669,020,100 Issue Shares were received, which represents an oversubscription rate of 22.27 times.
Meanwhile, 33,000,000 Issue Shares made available for application by the eligible directors, employees and other persons who have contributed to the success of the Group has also been fully subscribed.
Wentel Engineering, which is principally involved in the fabrication of semifinished metal products, fabrication of metal parts and assembly of finished products, aimed to raise an estimated gross proceeds of RM71.03 million via the issuance of 273.2 million new shares.
“The proceeds raised from the IPO will enable the company to cater for the next phase of its business expansion.
The group has earmarked 56.31% of the proceeds to part finance the construction of its new manufacturing plant and 35.24% to part finance the purchase of new machinery and equipment. The remaining proceeds will be for listing related expenses,” it said in a statement.
