KUALA LUMPUR (July 11): Sheet metal products manufacturer and scaffoldings supplier BWYS Group Bhd said that the 51.26 million new shares offered to the Malaysian public have been oversubscribed by 48.51 times.

The ACE Market-bound company has received a total of 22,223 applications for 2.54 billion shares, worth about RM558.35 million from the Malaysian public, according to its statement on Thursday.

BWYS, which is scheduled to be listed on July 22, offered 256.3 million new shares and an offer for sale of 100 million existing shares by way of private placement to selected investors. All in all, the initial public offering (IPO) involves 356.3 million shares, representing 34.75% of the company’s enlarged share capital of 1.03 billion shares.

The company is expected to have a market capitalisation of RM225.55 million upon listing, based on the enlarged share capital and an IPO price of 22 sen.

According to BWYS, 13,205 applications for 1.22 billion shares were received for the Bumiputera portion, representing an oversubscription rate of 46.71 times, while 10,018 applications were submitted for 1.32 billion shares for the public portion, representing an oversubscription rate of 50.31 times.

The 61.52 million shares available for application by the eligible directors and employees, as well as persons who have contributed to the success of the company, have been fully subscribed.

Meanwhile, the 15.38 million shares and 100 million offer shares by way of private placement to selected investors, as well as the 128.15 million shares by way of private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti), have also been fully placed out.

Notices of allotment will be posted to all successful applicants by July 18.

“We are encouraged by the positive response received for our IPO. With the incoming proceeds, we are poised to embark on our growth plans and expand our operations,” said BWYS managing director Kang Beng Hai.

Kang believes that the ongoing rollout of major infrastructure projects such as the Mass Rapid Transit 3 (MRT3), Penang Light Rail Transit (LRT), and the Johor Baru-Singapore Rapid Transit System (RTS) Link, combined with sustained growth in key industries and supportive government policies, bodes well for the sheet metal product industry.

Citing the Malaysian Iron and Steel Industry Federation, he said that domestic steel consumption is expected to grow to between 8.3 million tonnes and 9.0 million tonnes this year, from 7.9 million tonnes in 2023.

“The robust demand for steel products, driven by the resumption of construction projects, increased infrastructure spending, and the construction of data centres, indicates a positive outlook for the steel sector,” Kang said.

“Moving forward, we are committed to further developing our capabilities and expanding our product range to meet the evolving needs of our customers, which will enhance our position in the market and create long-term value for our shareholders,” he added.

M&A Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.