KUALA LUMPUR: Building management systems company Solar District Cooling Group Bhd's initial public offering (IPO) has been oversubscribed by 144.08 times ahead of its listing on the ACE Market of Bursa Malaysia on Sept 19.
Solar District received a total of 31,678 applications for 3.07 billion new shares worth RM1.17 billion from the public.
Under the Bumiputera category, there were 15,307 applications for 1.36 billion new shares, with an oversubscription rate of 127.06 times.
For the public portions, a total of 16,371 applications were recorded for 1.7 billion new shares, indicating an oversubscription rate of 161.09 times.
Meanwhile, the total of 21 million new shares available for application by the eligible persons were fully subscribed.
Under the private placement to selected investors comprising 76 million new shares, Solar District's placement agent confirmed that the placement portion has been fully covered.
With an IPO price of 38 sen per share, Solar District aims to raise RM45.09 million through the issuance of 118.67 million shares.
The group principally involved in the provision and maintenance of building management system (BMS), solar thermal systems and energy saving services.
It is involved in providing energy performance services to the concession companies that are providing hospital support services for public hospitals.
Solar District managing director Edison Kong said the overwhelming response to the IPO reflects a clear endorsement of the company's strategic direction and the growth potential in BMS and energy performance services sector.
"This strong show of confidence encourages us to continue enhancing our capabilities and expanding our footprint in the BMS and energy performance services sector.
"We remain dedicated to delivering high-quality building energy solutions and creating lasting value for our stakeholders," he said.
Mercury Securities Sdn Bhd is the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO.