Chemlite Innovation Berhad’s IPO Sees Strong Demand with Public Portion Oversubscribed by 32.41 Times!

Strong Investor Demand Signals Confidence in Chemlite Innovation’s Growth Potential

Chemlite Innovation Berhad (Chemlite Innovation), a leading engineering support services provider specializing in surface finishing treatment services, has successfully completed the balloting process for its Initial Public Offering (IPO) in conjunction with its listing on the ACE Market of Bursa Malaysia Securities Berhad.

Breakdown of the IPO

The IPO involves the issuance of 120,000,000 Issue Shares, allocated as follows:

30,000,000 Issue Shares available for application by the Malaysian public.
21,000,000 Issue Shares reserved for eligible directors, employees, and contributors to the Company’s success.
54,000,000 Issue Shares by private placement to institutional and/or selected investors.
15,000,000 Issue Shares by private placement to identified Bumiputera investors approved by MITI.

Additionally, the IPO includes an offer for sale of 60,000,000 Offer Shares via private placement to identified Bumiputera investors approved by MITI.

Overwhelming Subscription Rates

The 30,000,000 Issue Shares allocated to the Malaysian public saw overwhelming demand, with an overall oversubscription rate of 28.41 times:

Bumiputera portion: 4,843 applications for 381,162,500 Issue Shares, representing an oversubscription rate of 24.41 times.
Public portion: 4,445 applications for 501,116,800 Issue Shares, resulting in a record oversubscription rate of 32.41 times.

Meanwhile, the 21,000,000 Issue Shares available to Eligible Persons were fully subscribed.

Additionally, the 54,000,000 Issue Shares for institutional and selected investors were fully placed out, while the 75,000,000 IPO Shares (including 15,000,000 Issue Shares and 60,000,000 Offer Shares) reserved for Bumiputera investors approved by MITI were also fully subscribed.

CEO’s Statement on the IPO Success

Mr. Chong Yuen Fong, Executive Director and CEO of Chemlite Innovation Berhad, expressed his gratitude for the overwhelming investor response:

“We are incredibly honored and grateful for the strong demand for our IPO. This is a testament to investor confidence in Chemlite Innovation’s business model, technical capabilities, and growth potential. With the funds raised, we are well-positioned to enhance our production capabilities, invest in research and development, and expand our service offerings to better serve our customers across various industries.”

UOB Kay Hian’s Role in the IPO

UOB Kay Hian Securities (M) Sdn Bhd serves as the Principal Adviser, Sponsor, Underwriter, and Placement Agent for Chemlite Innovation’s IPO, playing a crucial role in ensuring the successful execution of this listing.

With this strong investor backing, Chemlite Innovation Berhad is set to accelerate its growth trajectory and expansion plans, further solidifying its position as a leader in the engineering support services industry.