BWYS Group’s Initial Public Offering Issue Oversubscribed By 48.51 Times

BWYS Group Bhd, which aims to raise RM56.4 million from its upcoming initial public offering (IPO) on the Bursa Malaysia’s ACE Market has received a total of 23,223 applications for 2,537,940,700 Issue Shares with a value of RM558,346,954.00 from the Malaysian public, which represents an overall oversubscription rate of 48.51 times.

In a filing on Bursa Malaysia today, Tricor Investor & Issuing House Services Sdn Bhd announced today the 51,260,800 Issue Shares made available for application by the Malaysian public have been oversubscribed.

The IPO involves the following:

(I) Public issue of 256,303,000 Issue Shares in the following manner:

• 51,260,800 Issue Shares made available for application by the Malaysian public;

• 61,512,800 Issue Shares made available for application by the eligible Directors, employees and persons who have contributed to the Group’s success;

• 128,151,700 Issue Shares by way of private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (“MITI”); and

• 15,377,700 Issue Shares by way of private placement to selected investors; and

(II) Offer for sale of 100,000,000 Offer Shares by way of private placement to selected investors.

For the Bumiputera portion, a total of 13,205 applications for 1,222,838,600 Issue Shares were received, which represents an oversubscription rate of 46.71 times. For the public portion, a total of 10,018 applications for 1,315,102,100 Issue Shares were received, which represents an oversubscription rate of 50.31 times.

Meanwhile, 61,512,800 Issue Shares made available for application by the eligible Directors, employees and persons who have contributed to the Group’s success has also been fully subscribed.

Further, the Placement Agent has confirmed that the 128,151,700 Issue Shares by way of private placement to Bumiputera investors approved by the MITI have been fully placed out, as well as 15,377,700 Issue Shares and 100,000,000 Offer Shares by way of private placement to selected investors have been fully placed out.

The notices of allotment will be posted to all successful applicants on 18 July 2024.

Managing Director of BWYS Kang Beng Hai, in a statement today said, “We are encouraged by the positive response received for our IPO. With the incoming proceeds, we are poised to embark on our growth plans and expand our operations.”

“From a broader perspective, we believe that the ongoing rollout of major infrastructure projects such as the Mass Rapid Transit 3 (MRT3), Penang Light Rail Transit (LRT), and Johor Baru-Singapore Rapid Transit System (RTS) Link, combined with sustained growth in key industries and supportive government policies, bodes well for the sheet metal product industry. The robust demand for steel products, driven by the resumption of construction projects, increased infrastructure spending, and the construction of data centres, indicates a positive outlook for the steel sector. According to the Malaysian Iron and Steel Industry Federation (MISIF), domestic steel consumption is expected to grow to between 8.3 million and 9.0 million tonnes this year, from 7.9 million tonnes in 2023. This positive industry forecast further reinforces our confidence in the growth potential of BWYS.”

“Moving forward, we are committed to further developing our capabilities and expanding our product range to meet the evolving needs of our customers, which will enhance our position in the market and create long-term value for our shareholders,” Mr. Kang concluded.

BWYS is scheduled to be listed on the ACE Market of Bursa Securities on Monday, 22 July 2024. Upon listing, BWYS will have a market capitalisation of approximately RM225.55 million based on issue price of RM0.22 per share and the enlarged share capital of 1,025,213,000 shares.

Earlier, the sheet metal products manufacturer and scaffoldings supplier said the IPO, scheduled for July 22, comprises a public issuance of 256.3 million new ordinary shares, representing 25 per cent of its enlarged share capital, as well as an offer for sale of 100 million existing shares, or 9.8 per cent of its enlarged share capital, by way of private placement to selected investors.

“Based on the IPO price of RM0.22 per share and its enlarged issued shares of 1,025.2 million shares, BWYS’ market capitalisation upon listing is approximately RM225.5 million,” it said in a statement today, in conjunction with the launch of the company’s prospectus.

M & A Securities Sdn Bhd is the Principal Adviser, Sponsor, Underwriter and Placement Agent for this IPO.

Previous articleRPM Platform Markets APAC Opens Advanced Manufacturing Plant In Serendah
Next articleKLFW 2024 Set To Dazzle At Suria KLCC

LEAVE A REPLY

Please enter your comment!
Please enter your name here