ACE-MARKET BOUND NESTCON IPO OVERSUBSCRIBED BY 57 TIMES

KUALA LUMPUR, June 21 -- Nestcon Bhd, slated to be listed on the ACE Market of Bursa Malaysia on June 29, 2021, has seen the public portion of its initial public offering (IPO) oversubscribed by 57.13 times.

In a statement today, the construction company said its listing entailed a public issue of 160.96 million new ordinary shares at an issue price of RM0.28 per share, representing 25 per cent of its enlarged share capital.

The IPO exercise is set to raise approximately RM45 million in proceeds, along with an offer for the sale of over 32 million existing shares.

“Nestcon has received a total of 22,673 applications for 1.87 billion shares with a value of RM524 million from the Malaysian public for the 32.19 million shares, representing an oversubscription rate of 57.13 times,” it said.

It added that the 32.19 million shares available for application by eligible directors and employees have been completely subscribed.

“The private placement of 16.10 million shares available to selected investors, along with 80.48 million shares available to Bumiputera investors approved by the Ministry of International Trade and Industry, have also been fully placed out,” the group said.

 In addition, it said the offer for the sale of 32.19 million existing shares have been taken up entirely as well, adding that notices of allotment will be posted to all successful applicants on or before June 28.

Nestcon managing director Datuk Lim Jee Gin said the group is confident of its growth trajectory, supported by a strong unbilled orderbook of RM1.2 billion which would sustain its revenue flow in the next three years.

“We expect to turn in a satisfactory set of results for 2021. But what is more important is our future earnings growth prospects beyond 2021, which we hope would bring excitement to our shareholders,” he said.

Lim noted that Nestcon has tendered for 51 projects worth RM2.8 billion -- an all-time high tender book for the company -- of which 66 per cent was for its civil engineering and infrastructure segment and the remainder for its building construction segment.

Upon its listing on ACE Market, Nestcon would have a market capitalisation RM180.27 million, based on the issue price of RM0.28 and its enlarged share capital of 643.82 million shares.

-- BERNAMA