AME’s IPO oversubscribed by 4.39 times

AME’s IPO oversubscribed by 4.39 times

KUALA LUMPUR: Integrated industrial property solutions provider AME Elite Consortium Bhd’s initial public offering (IPO) has been oversubscribed by 4.39 times, ahead of its listing on the Main Market of Bursa Malaysia on Oct 14.

In a statement Wednesday, AME said it received 2,449 applications for 46 million shares with a value of RM59.81 million versus the 8.54 million shares that were made available for application by the Malaysian public.

AME group managing director Kelvin Lee Chai said the group’s sizeable order book and unbilled sales provide earnings visibility until the second quarter of 2021.

“Coupled with ongoing efforts to meet incoming demand for industrial properties, we are optimistic of leveraging on the uptrend,” he said.

He said the group intends to adopt a dividend policy to distribute at least 20 per cent of its annual profit after tax to shareholders, subject to business performance and the recommendation of the board of directors.

“Apart from developing its own industrial parks under the ‘i-Park’ brand in Johor, AME also designs and constructs large customised manufacturing plants and industrial buildings.

“The group has completed around 200 large manufacturing plants and industrial buildings in Peninsular Malaysia for various industries including steel, oleo chemical, oil and gas, electrical and electronics, consumer products, food and beverage, logistics and automotive, and more,” he said.

AME’s IPO consists of a public issue of 85.4 million new shares along with an offer-for-sale of 42.7 million existing shares, at an issue price of RM1.30 per share.

Under the listing exercise, AME aims to raise RM166.6 million, with RM111.1 million to be used for business expansion and the remaining RM55.5 million to shareholders via an offer-for-sale.

From the RM111.1 million allocation for business expansion, RM69.1 million will be allocated for future industrial property development and investment projects, RM23 million for working capital for the i-Park @ Senai Airport City development, RM9 million to complete the expansion of the group’s precast concrete fabrication capacity, and the remaining RM10 million for the defraying of listing expenses.

CIMB Investment Bank Bhd is the principal adviser, managing underwriter, joint underwriter and joint bookrunner, while RHB Investment Bank Bhd is the joint underwriter and joint bookrunner for AME’s IPO.