Coraza shares oversubscribed

Coraza shares oversubscribed

KUALA LUMPUR: Integrated engineering supporting services provider Coraza Integrated Technology Bhd’s initial public offering (IPO) for the public portion has been oversubscribed by 132.5 times.

“A total of 26,781 applications seeking 2.86 billion new shares, valued at RM800.7mil were received for the 21.4 million new shares made available for application by the Malaysian Public,” Coraza said in a statement.

The Bumiputera portion was oversubscribed by 93.7 times, with 12,482 applications for 1.01 billion new shares received.

For the public portion, a total of 14,299 applications for 1.85 billion new shares were received, representing an oversubscription rate of 171.4 times.

Meanwhile, the 21.4 million new shares for its eligible directors, employees and persons who have contributed to the success of Coraza group have also been fully subscribed.

In addition, Coraza said its placement Agent had confirmed that 96.4 million shares made available for application by way of private placement to selected investors have been fully placed out.

Managing director Lim Teik Hoe said the support garnered was an encouraging sign as Coraza embarks on its next phase of growth as a public-listed company.

“Our prospectus opening period was during the Christmas and year-end holiday season.

“We are certainly encouraged by the overwhelming response from the public, which is a testimony to the public’s confidence in Coraza’s business model and future plans,” he said.

Lim said the proceeds would enable the company to expand its existing manufacturing floor space in anticipation of a strong demand for its services.

“It will also enable us to part finance the construction of a new factory adjacent to our existing factory in Nibong Tebal, Penang to expand our production capacity and service offerings to take advantage of the rapid growth in the semiconductor industry.

“With the extension of existing factory and construction of a new factory, we will purchase new machinery over the next three years to increase the company’s sheet metal fabrication capacity,” he added.

Under the listing exercise, Coraza is expected to raise RM33mil from its public issue of 117.8 million new shares at an issue price of 28 sen per share.

Coraza is scheduled to be listed on the ACE Market of Bursa Securities by Jan 20, 2022.

https://www.thestar.com.my/business/business-news/2022/01/10/coraza-shares-oversubscribed