Wegmans' IPO oversubscribed by 16.35 times

PETALING JAYA: Furniture maker Wegmans Holdings Bhd, which is en route to a listing on the ACE Market of Bursa Malaysia next Tuesday, saw an oversubscription rate of 16.35 times for the Malaysian public portion.
Its initial public offering (IPO) received 7,744 applications for 433.64 million shares valued at RM125.75 million for 25 million shares
made available for subscription by the Malaysian public. The offer price is 29 sen a share.
For the bumiputra portion, 4,708 applications for 221,99 million shares were received, which represents an oversubscription rate of 16.76 times.
For the other Malaysian public portion, 3,036 applications for 211.64 million shares were received, which represents an oversubscription rate of 15.93 times.
Meanwhile, the 15 million shares made available for application by the eligible directors and employees as well as persons who have contributed to the success of Wegmans group have been fully subscribed.
Wegmans will be allocating RM11 million of the RM29 million it hopes to raise from the IPO to construct a new factory in a bid to double its production capacity. Another RM11 million will be used to purchase new equipment and machinery to increase automation. The rest of the proceeds will be used for working capital and to finance listing expenses.