KUALA LUMPUR (Bernama) — Flexidynamic Holdings Bhds initial public offering (IPO) for the Malaysian public has been oversubscribed by 155.72 times.
In a statement, Flexidynamic said the IPO involves a public issue of 75.231 million shares at the issue price of RM0.20 per share of which 14.195 million are available for application by the Malaysian public.
The company, which is principally involved in the design, engineering, installation and commissioning of glove chlorination systems, received 23,466 applications for 2.22 billion new shares valued at RM444.94 million for the 14.2 million new shares earmarked for the Malaysian public.
The group said 4.258 million new shares available for application by eligible employees and persons who have contributed to the success of Flexidynamic and its subsidiaries have also been fully subscribed while the placement agent has also confirmed that the 56.778 million shares made available for application by way of private placement have been fully placed out.
Flexidynamic managing director Tan Kong Leong said the oversubscription reflects the confidence that the investing public has in the groups business prospect and future plans.
“We have laid a strong foundation and built a resilient business for the past nine years. This has paved the way for our future growth as we continually aim to expand our business worldwide.
“We trust that this IPO will help to accelerate the growth of our company to become the key leader in the glove manufacturing industry, he said.
Meanwhile, M&A Securities managing director of corporate finance Datuk Bill Tan said the subscription amount was the highest ever for an IPO in the past three years and marks the pent-up demand for quality IPOs backed by the return of positive investor sentiment for fundamentally solid businesses.
The principal adviser, sponsor, underwriter and placement agent for the IPO exercise said Flexidynamic would continue to see robust demand for its services and products among glove makers.