KUALA LUMPUR (Jan 22): HE Group Bhd's initial public offering (IPO) has been oversubscribed by 63.35 times by the Malaysian public ahead of its listing on the ACE Market of Bursa Malaysia on Jan 30.

The 22 million IPO shares made available for the Malaysian public received a total of 12,201 applications for 1.42 billion IPO shares, valued at RM396.37 million, representing an overall oversubscription rate of 63.35 times, said HE Group in a statement on Monday.

For its Bumiputera category, a total of 7,533 applications for 801.90 million IPO shares were received, representing an oversubscription rate of 71.90 times. For the public portion, a total of 4,668 applications for 613.70 million IPO shares were received, representing an oversubscription rate of 54.79 times.

“The 11 million IPO shares made available for application by eligible directors, employees, and business associates who have contributed to the success of HE Group and its subsidiaries were fully subscribed,” said the group.

The group aims to raise about RM24.33 million from the IPO, of which RM15.13 million will be set aside for working capital requirements, followed by RM3.65 million for business expansion to expand end-user industry coverage to include data centres and set up physical offices in Kedah and Johor, RM3.8 million for estimated listing expenses, and the remaining RM1.75 million for capital expenditure.

HE Group, via its subsidiary Hexatech Engineering Sdn Bhd, is principally involved in designing, supplying, installing, testing and commissioning power distribution systems of various voltage levels (high, medium, low and extra low).

HE Group has a track record of serving multinational companies in Malaysia, particularly for semiconductors, medical devices and electronic products, which reportedly require high-quality power supply that is reliable and stable.

As at Dec 15, 2023, the group’s order book stood at RM211.9 million, keeping the group busy until the end of 2024.

Alliance Islamic Bank Bhd confirmed that 44 million IPO shares made available for application by way of private placement to selected investors were fully taken up.

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