Ecoscience’s IPO oversubscribed by 7.23 times


KUALA LUMPUR: Ecoscience International Bhd, which is slated for a list on the ACE Market of Bursa Malaysia on July 18, mentioned its preliminary public providing (IPO) has been oversubscribed by 7.23 times.

“Ecoscience has received a total of 3,908 applications for 139.89 million shares with a value of approximately RM42mil for the 17 million shares allocated to the Malaysian public, representing an oversubscription rate of 7.23 times,” the built-in palm oil milling companies supplier mentioned in a press release.

It mentioned the Bumiputera public portion was oversubscribed by 6.03 times, after a complete of two,187 functions for 59.73 million shares have been obtained.

For the non-Bumiputera public portion, a complete of 1,721 functions for 80.16 million shares have been obtained, representing an oversubscription charge of 8.43 times.

The 6.8 million shares obtainable for utility by the eligible administrators and workers, and individuals who’ve contributed to the success of Ecoscience have been totally subscribed.

“The enthusiastic response we received for our IPO reflects the public’s belief in the fundamentals and prospects of Ecoscience. With the funding secured, we are now ready to execute our expansion plans and capitalise on the growth opportunities available in the palm oil industry,” managing director Wong Choi Ong mentioned.

“Among the plans include the incorporation of a wholly-owned subsidiary as well as the establishment of a new fabrication facility and office in Indonesia. As it is the world’s largest palm oil producer, the opportunities there are rife.

“Once operational, we believe the enhanced market presence will increase our odds of landing new contracts in the country as we will be better positioned to serve our Indonesian customers,” he added.

Upon itemizing, Ecoscience can have a market capitalisation of RM102mil primarily based on the problem worth of 30 sen and its enlarged share capital of 340 million shares.

Hong Leong Investment Bank Bhd is the principal adviser, sponsor, underwriter, and placement agent for the IPO train.

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