HE Group IPO oversubscribed by over 63.35 times

KUALA LUMPUR: HE Group Bhd, slated for a listing on the ACE Market of Bursa Malaysia on Jan 30, has seen its initial public offering (IPO) oversubscribed by 63.35 times.

The electrical engineering service provider received a total of 12,201 applications for 1.41 billion issue shares with a value of RM396.36mil from the Malaysian public, representing an overall oversubscription rate of 63.35 times.

For the Bumiputera portion, a total of 7,533 applications for 801.9 million issue shares were received, which represents an oversubscription rate of 71.90 times.

It said, that for the public portion, a total of 4,668 applications for 613.7 million issue shares were received, representing an oversubscription rate of 54.79 times.

Meanwhile, 11 million shares made available for application by the eligible persons have also been fully subscribed.

Further, the placement agent, Alliance Islamic Bank Bhd, has confirmed that the 53.88 million issue shares and 44 million offer shares made available for application by way of private placement to selected investors have been fully placed out.

Alliance Islamic Bank is the principal adviser, sponsor, sole underwriter and placement agent for this IPO.

“We are pleased with the strong response to our IPO, confirming market confidence in HE Group’s business strategies. This empowers us to further our commitment to expansion, particularly in critical and high-value industries including the semiconductor, medical devices, and electronic products industries, and data centres,” managing director Haw Chee Seng said in a separate statement.

“We look forward to utilising the IPO proceeds to transform into an integrated mechanical, electrical, and process engineering service player. By being a single-point-of-contact, we can enhance the quality and convenience for our customers, while enabling us to effectively capture new business opportunities.”