AZTECH Global received applications from retail investors for 18.4 times the number of shares available in the public portion of its initial public offering (IPO), it announced on Thursday.

 

With 3.5 million shares available to the public for subscription, it received 4,143 valid applications for about 64.42 million shares, with application monies received amounting to some S$82.5 million.

 

Additionally, the company, which is in the business of the Internet of Things (IOT) and data communication, received indications of interest for about 1.06 billion placement shares, of the 64.62 million available. This results in its placement shares being some 16.4 times subscribed.

 

Overall, based on the 68.12 million offer shares available for subscription under its IPO, assuming that the over-allotment option is not exercised, the invitation was 16.5 times subscribed.

 

Michael Mun, executive chairman and chief executive of the company, said: " The subscription and application results are testament to Aztech' s strong investment proposition and a strong vote of confidence for our group' s growth plans and proven track record in innovating and introducing products aligned to the evolving electronics industry."

 

He added: " Our successful listing also serves as a strategic platform for us to attract capital and the right talent, as we seek to grow and capitalise on opportunities to realise our business strategies and future plans."

 

Based on the invitation price of S$1.28 and the post-invitation share capital of 773.72 million shares, Aztech' s market capitalisation will stand at S$990.4 million.

 

Separately, a total of 18 cornerstone investors including DBS, acting on behalf of some wealth management clients the Employees Provident Fund Board JPMorgan Asset Management (Singapore) and HSBC Global Asset Management (Hong Kong) had subscribed for 163.88 million shares at the invitation price.

 

The estimated net proceeds due to the company from the invitation and issuance and sale of cornerstone shares, after deducting the relevant expenses, will be S$188.6 million.

 

UOB and Maybank Kim Eng Securities were the joint issue managers for the IPO. UOB, Maybank Kim Eng Securities, and DBS were the joint global coordinators, bookrunners and underwriters for the IPO.

 

Trading of shares is expected to commence at 9am on Friday.