Main Market-bound Well Chip Group Bhd's (WCGB) Initial Public Offering (IPO) has been oversubscribed 12.87 times.

Malaysian Issuing House Sdn Bhd, in a statement today, said a total of 13,057 applications for 416.12 million IPO shares were received for the 30 million shares made available for application by the Malaysian public.

For the Bumiputera portion, a total of 3,572 applications for 96.6 million IPO shares were received, representing an oversubscription rate of 5.44 times.

The non-Bumiputera portion, meanwhile, received a total of 9,485 applications for 319.56 million IPO shares, representing an oversubscription rate of 20.3 times.

The Johor-based WGCB, which is seeking to raise RM172.5mil from its IPO, mainly deals in gold and related items as collateral to facilitate cash lending to the underserved and unserved segments of society.

WCGB's history traces back to 2006, where they started the pawnbroking services business and the first pawnshop was opening in 2007. The business has expanded to 23 pawnshops and 4 retail outlets as of LPD.

Of the IPO proceeds, RM124.3mil or 72% will be allocated as cash capital for its existing 23 pawnshops, RM40mil or 23.2% for the expansion of seven new pawnshops and the balance of RM8.2mil or 4.8% to pay-off listing expenses.

The company's listing is scheduled for July 23.

Kenanga Investment Bank Bhd is the principal adviser, managing underwriter, joint underwriter and joint placement agent; and CGS-International Securities Malaysia Sdn Bhd is the joint underwriter and joint placement agent for this IPO exercise.