Pawnbroker Evergreen Cash Max IPO oversubscribed by 53.06 times

KUALA LUMPUR: ACE Market-bound Evergreen Max Cash Capital Bhd’s (EMCC) initial public offering (IPO) for the public potion was oversubscribed by 53.06 times.

In a statement today, executive director and group managing director Datuk Low Kok Chuan said the oversubscribed IPO demonstrates the positive market response towards the group’s fundamentals and attractive industry prospects.

“With the incoming proceeds, we are set to accelerate our growth plans and further expand our operations in the pawnbroking industry.

“A large portion of our IPO proceeds will be utilised as cash capital for our pawnbroking business and to open new ‘Pajaking’ pawnshops. This will enable us to garner a larger market share as well as increase our brand visibility,” said Low.

EMCC received 14,568 applications for 3.01 billion shares with a value of RM722.66 million for 55.70 million shares allocated to the Malaysian public, which represents an oversubscription rate of 53.06 times.

For the Bumiputera public portion, 4,596 applications for 656.83 million shares were received, representing an oversubscription rate of 22.58 times.

Meanwhile, for the non-Bumiputera public portion, there were 9,972 applications for 2.35 billion shares, representing an oversubscription rate of 83.53 times.

The 27,900,000 new shares made available for application by the eligible directors, employees and persons who have contributed to the success of EMCC have been fully subscribed.

Meanwhile, 44,600,000 new shares and 43,000,000 existing shares made available by way of placement to selected investors have also been fully subscribed.

In addition, the 139,400,000 new shares made available by way of placement to selected Bumiputera investors approved by the Ministry of Investment, Trade, and Industry have also been fully placed out.

Notices of allotment will be sent to all successful applicants on or before Sept 22, 2023.

EMCC is en route to a listing on the ACE Market of Bursa Malaysia on Sept 26, 2023.

Upon listing, EMCC would have a market capitalisation of RM267.6 million based on the IPO price of RM0.24 per share and its enlarged share capital of 1.11 billion shares.

Mercury Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for this IPO. – BK