AME Elite's offer of 8.54m new shares to public oversubscribed 4.39 times
Published on 02 Oct 2019. | Source: thestar.com.my
KUALA LUMPUR: Integrated industrial property solutions provider AME Elite Consortium Bhd's offer of 8.54 million new shares to the public at RM1.30 each was oversubscribed by 4.39 times.
It said on Wednesday AME received 2,449 applications for 46 million shares with a total value of RM59.81mil.
AME’s IPO consists of a public issue of 85.4 million new shares along with an offer-for-sale of 42.7 million existing shares, at an issue price of RM1.30 per ordinary share.
The size of the entire IPO deal amounts to RM166.60mil, of which AME aims to raise RM111.10mil primarily to expand its business while the remaining RM55.50mil would go to the vendors.
AME is seeking to list on the Main Market of Bursa Malaysia Securities.
AME group managing director Kelvin Lee Chai said the oversubscription from the Malaysian public showed the investors’ strong interest in its business model and prospects.
He said the company was a proxy to growth in industrial properties alongside higher foreign direct investment (FDI) and domestic expansion.
“Our sizeable orderbook and unbilled sales provides earnings visibility till the second quarter of 2021. Coupled with ongoing efforts to meet incoming demand for industrial properties, we are optimistic of leveraging on the uptrend.
“We intend to adopt a dividend policy to distribute at least 20.0% of our annual profit after tax attributable to shareholders (excluding any fair value gain), subject to business performance and recommendation of the board, ” Lee said.
Out of the RM111.10mil raised from the sale of new shares, the company will use RM69.10mil will be for future industrial property development and investment projects, RM23mil as working capital for the i-Park @ Senai Airport City development, RM9mil to complete the expansion of the group’s precast concrete fabrication capacity and the remaining RM10mil to defray listing expenses.
AME is slated for listing on the Main Market of Bursa Securities on Oct 14,2019.
CIMB Investment Bank Bhd is the principal adviser, managing underwriter, joint underwriter and joint bookrunner, while RHB Investment Bank Bhd is the joint underwriter and joint bookrunner for AME’s IPO.
Stay tuned for a new offer coming to you soon.
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