Kawan Renergy’s IPO oversubscribed 95 times as investors snap up shares

KAWAN Renergy Bhd said investors have snapped up the 27.5 million shares it made available to the public for its initial public offering (IPO) at 30 sen per share.

The ACE Market-bound engineering solutions provider’s IPO offered a total of 144.5 million shares, consisting of 110 million new shares plus an offer for sale of 34.5 million shares.

A large portion of 63.5 million IPO shares were allocated for Bumiputera investors as approved by the Ministry of Investment, Trade and Industry (Miti), its prospectus stated. 

The company received 23,636 applications for 2.64 billion shares worth RM791.91 million from the Malaysian public, which represents an overall oversubscription rate of 94.99 times against 27.5 million shares made available, Kawan Renergy said in a statement today.

For the allocation of about 13.75 million shares for the Bumiputera balloting portion, it received 13,047 applications for 1.16 billion shares, representing an oversubscription rate of 83.12 times.

For the remaining public portion, it received 10,589 applications for 1.48 billion shares, which represents an oversubscription rate of 106.86 times.

Meanwhile, the 19.25 million shares made available for eligible directors, employees and persons who have contributed to the success of the company have also been fully subscribed, it added.

Its placement agents also confirmed they have fully placed out a total of 97.75 million shares, of which 29 million shares were offered to selected investors.

Based on 110 million new shares issued, Kawan Renergy is expected to have raised some RM33 million from the IPO, which has been earmarked for working capital requirements of ongoing and future co-generation plant projects and repayment of bank borrowings.

Kawan Renergy is scheduled to be listed on the ACE Market on May 29, with an estimated market capitalisation of RM165 million. — TMR