Coraza Integrated Technology’s public portion IPO oversubscribed 132.5 times

The support garnered is an encouraging sign as the firm embarks on its next phase of growth as a public-listed company 

By TMR /Pic Source:

INTEGRATED engineering supporting services provider Coraza Integrated Technology Bhd’s IPO for the public portion has been oversubscribed by 132.5 times. 

A total of 26,781 applications seeking 2.86 billion new shares, valued at RM800.7 million were received for the 21.4 million new shares made available for application by the Malaysian public, the company said in a statement yesterday. 

The Bumiputera portion was oversubscribed by 93.7 times, with 12,482 applications for 1.01 billion new shares received. 

For the public portion, a total of 14,299 applications for 1.85 billion new shares were received, which represent an oversubscription rate of 171.4 times.

Meanwhile, the 21.4 million new shares for its eligible directors, employees and persons who have contributed to the success of Coraza Group, have also been fully subscribed. 

In addition, its placement agent has confirmed that 96.4 million shares made available for application by way of private placement to selected investors have been fully placed out. 

Coraza Integrated Technology MD Lim Teik Hoe said, the company is delighted to see strong support from retail investors in its shares. 

The support garnered is an encouraging sign as Coraza Integrated Technology embarks on its next phase of growth as a public-listed company. 

“Our prospectus opening period was during the Christmas and year-end holiday season. We are certainly encouraged by the overwhelming response from the public, which is a testimony to the public’s confidence in Coraza Integrated Technology’s business model and future plans. 

“The proceeds will enable us to expand our existing manufacturing floor space in anticipation of a strong demand for our services. 

“It will also enable us to partfinance the construction of a new factory adjacent to our existing factory in Nibong Tebal, Penang, to expand our production capacity and service offerings to take advantage of the rapid growth in the semiconductor industry. 

“With the extension of our existing factory and construction of a new factory, we will purchase new machinery over the next three years to increase the company’s sheet metal fabrication capacity,” he added. 

Coraza Integrated Technology is expected to raise RM33 million from its Public Issue of 117.8 million new shares at an issue price of 28 sen per share. 

The listing also includes an offer for sale of 21.4 million existing shares to selected investors by way of private placement. 

Based on the enlarged share capital of 428.3 million shares, the total market capitalisation of Coraza Integrated Technology upon its listing would be RM119.9 million. 

The company is scheduled to be listed on the ACE Market of Bursa Securities by Jan 20, 2022. 

M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for the IPO exercise.