Sin-Kung Logistics’ IPO public portion oversubscribed 26.5 times

PETALING JAYA: Integrated logistics service provider Sin-Kung Logistics Bhd’s initial public offering (IPO) for the public portion has been oversubscribed by 26.5 times.

A total of 13,179 applications seeking 1.7 billion new shares were received from the Malaysian public for 60 million new shares that were made available for public subscription.

In a statement, the company said the Bumiputera public portion of shares was oversubscribed by 21.7 times, after a total of 7,360 applications for 680.7 million new shares received.

For the non-Bumiputera public portion, a total of 5,819 applications for 971.8 million new shares were received, which represents an oversubscription rate of 31.4 times.

Meanwhile, the 45 million new shares for its eligible directors, employees and persons who have contributed to the success of Sin-Kung Logistics Group have also been fully subscribed.

In addition, its placement agent has confirmed that 198.5 million shares made available for application by way of private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry and selected investors have been fully placed out.

Sin-Kung Logistics, which is scheduled to list on the ACE Market of Bursa Malaysia Securities Bhd on May 15, 2024, aims to raise RM26mil from its IPO.

Under the listing exercise, the company is issuing 200 million new shares and an offer for sale of 103.5 million existing shares, representing 16.7% and 8.6% of the enlarged share capital of Sin-Kung Logistics respectively, at an issue price of RM0.13 per share.

Based on the enlarged share capital of 1.2 billion shares, Sin-Kung Logistics is expected to have a market capitalisation of RM156 mil after listing.

All notices of allotment for these shares will be mailed to successful applicants on or before 13 May 2024.

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