Penang-Based AMS Advanced Material IPO Sees Massive 9 Times Oversubscription
Source: Penang Today
AMS Advanced Material Bhd has attracted overwhelming investor demand, with its ACE Market initial public offering oversubscribed by 9.03 times ahead of its listing on April 23.
The company received 8,110 applications for 307.03 million shares valued at RM89.04 million under the public balloting portion, according to a bourse filing on Tuesday.
Interest proved particularly strong among retail investors, with the Bumiputera tranche oversubscribed by 2.98 times and the remaining public portion surging to 15.08 times. Private placement shares earmarked for Bumiputera investors and selected investors were both fully subscribed.
Priced at 29 sen per share, the IPO aims to raise up to RM32.8 million for the company alongside RM13.6 million for a private vehicle owned by managing director Keh Teng Yang.
AMS Advanced Material specialises in trading semi-finished aluminium and copper products, along with processing semi-finished aluminium. The firm serves manufacturers, contractors and fabricators across the aerospace, semiconductor and automotive sectors.
A substantial RM8.1 million of the proceeds has been allocated towards establishing a new manufacturing facility in Penang that will also function as a warehouse, specifically to support export-oriented semiconductor and engineering clients.
Remaining funds will channel into expanding the aluminium architectural products division, opening a fresh distribution point in Kuantan, Pahang, settling bank obligations, covering working capital needs and absorbing listing-related expenses.
M&A Securities serves as the IPO’s principal adviser, sponsor, underwriter and placement agent.
Source: The Edge Malaysia
