The initial public offering (IPO) price of CTOS Digital Bhd which will be listed on the Main Market of Bursa Malaysia has recorded a subscription surplus of 27.57 times.
In a statement yesterday, the company said it had received a total of 51,494 applications for 1.26 billion shares with a total value of RM1.38 billion out of 44 million shares available for application.
For the Bumiputera division, the company's IPO recorded an oversubscription of 14.37 times with a total of 14.192 applications for 338.1 million issued shares received while the public division recorded an oversubscription of 40.77 times with a total of 37.302 applications for 918.9 million issued shares received.
“The institutional offering of 936 million IPO shares comprising 900 million offer shares and 36 million issued shares offered to local and foreign investors as well as selected Malaysian investors have been fully subscribed.
"A total of 23 basic investors subscribed for 54.4% of the institutional offering and the remaining shares available for pricing saw extraordinary demand when it recorded more than RM6.5 billion," he said as reported by Bernama.
Group chief executive officer Dennis Martin said the strong subscription surplus in the retail and institutional offerings showed the investment community's confidence in its track record and strong growth trajectory.
“Our ambition is to develop a comprehensive credit reporting ecosystem in the region, the response from the institutional and retail investment community, reflects their confidence in our ability to realize that aspiration,” he explained.
CTOS Digital is scheduled to be listed on the Main Market of Bursa Malaysia on July 19 with an IPO price of RM1.10 per share with a market capitalization of RM2.4 billion.
The IPO move includes a public issue of 200 million new shares and an offer allocation for the sale of 900 million existing shares.
“From the proceeds of the new IPO of RM220 million, a total of RM155.2 million will be used to repay all bank loans to settle debts while RM59 million will be allocated for investments and acquisitions of identified companies.
"The remaining RM6.1 million will be used to cover listing fees and expenses," he said.
