NWE Resources IPO public tranche oversubscribed 2.82 times
The IPO is priced at 20 sen per share and is expected to raise approximately RM28.6 million through new shares.
NWE Resources Group Bhd attracted 3,068 applications seeking 103.16 million IPO shares against a public allocation of 27 million shares. The company reported an oversubscription rate of 2.82 times in its Bursa Malaysia filing.
For the Bumiputera allocation, 1,536 applications sought 38.93 million shares, resulting in oversubscription of 1.88 times. The non-Bumiputera allocation drew 1,532 applications seeking 64.23 million shares and was oversubscribed by 3.76 times.
All 10.8 million shares set aside for directors, employees and other eligible persons were subscribed. Investors also took up the entire private placement of 105.35 million shares. The company said 16 investors received placement shares, with the three largest accounting for 72.19% of that tranche.
The IPO involves 143.15 million newly issued shares, representing a 26.51% stake, with no existing shares offered. Priced at 20 sen each, the issue will raise approximately RM28.6 million and value the company at RM108 million on listing.
NWE Resources plans to allocate RM9.1 million to developing new products, RM8.2 million to working capital and RM4.6 million to marketing and promotion. Other proceeds will support research and development capabilities, a Johor sales office, rooftop solar installations, vehicles and listing costs.
Based in Shah Alam, the company distributes health food through multi-level marketing, supplies hotels and resorts with shampoo and other personal care products, and repackages food and beverages. KAF Investment Bank Bhd serves as the IPO's principal adviser, sponsor, underwriter and placement agent.
