MINOX International Group Bhd, set to join the ACE Market, has reported a substantial oversubscription of its IPO.
The public portion, consisting of 18 million new shares, attracted 143.76 times oversubscription, with 15,818 applications for 2.605 billion shares. This includes 8,849 applications for 1.145 billion shares for the Bumiputera portion of nine million shares and an additional 6,969 applications totalling 1.469 billion shares for the remaining nine million shares issued by Minox.
The oversubscription for the Bumiputera portion reached 126.29 times, while the remaining portion achieved 161.22 times oversubscription.
Minox, set to debut on Oct 17, plans to raise RM22.5 million from the IPO by issuing 90 million new shares at 25 sen each.
Apart from the public IPO portion, Minox is issuing 10.8 million shares to eligible directors and employees, 45 million shares under private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI), and 16.2 million for private placement to selected investors. These shares have already been fully subscribed and placed.
The IPO also includes an offer for sale of 18 million existing shares, representing 5% of the enlarged share capital of 360 million shares.
The IPO proceeds will be allocated to various purposes, including product development, constructing a fourth warehouse in Puchong, Selangor, establishing a new warehouse in Singapore, repaying bank borrowings, working capital and covering listing expenses.
Minox serves end-customers in the food and beverage, pharmaceutical and semiconductor industries, with regional offices in Malaysia, Indonesia, Singapore and Thailand.
After listing, the company's largest shareholders will include MD Cheong Chee Son with a 51.4% stake, ED Looi Poo Poo with 10.4% and Minox Indonesia director Gamal Abdul Nashir with 4.9%.
Upon listing, Minox will have a market capitalisation of RM90 million, valuing the company at 10.68 times its price-earnings ratio based on a net profit of RM10.3 million for the financial year ending Dec 31, 2022.