KUALA LUMPUR (Aug 27): Steel Hawk Bhd's initial public offering (IPO) in conjunction with its transfer from the LEAP Market to the ACE Market saw its offer to the Malaysian public oversubscribed by 276.83 times.

The oil and gas (O&G) support services firm's IPO entails the issuance of 90 million new shares, of which 24.5 million were allocated to the Malaysian public.

That portion, valued at RM3.68 million based on the IPO price of 15 sen per share, saw a total of 34,838 applications for 6.81 billion shares, with a value of RM1.02 billion.

The Bumiputera portion saw an oversubscription rate of 245.25 times, while the public portion recorded a higher oversubscription rate of 308.40 times, according to a statement on the IPO reception.

Besides, the 12.25 million shares reserved for eligible directors, employees and contributors to Steel Hawk were fully subscribed.

The placement of the remaining 53.25 million new shares, as well as an offer for the sale of 44.7 million existing shares to selected investors, were also fully taken up.

Notices of allotment will be sent to successful applicants on Sept 3, ahead of its Sept 5 listing, Steel Hawk said.

In total, the IPO, which values the group at RM73.5 million, would see approximately RM13.5 million raised by the company and another RM6.71 million from the offer for sale going to existing shareholders.

More than 51% of the RM13.5 million proceeds from the public issue will go towards the construction of the proposed Teluk Kalung Facility 2 in Terengganu, where it recently secured a scaffolding services contract from Kertih Port Sdn Bhd, a wholly-owned subsidiary of Petronas Chemicals Group Berhad (KL:PCHEM).

Steel Hawk will also set aside 15% of the proceeds as working capital and 7.4% for the repayment of bank borrowings.

Steel Hawk shareholders include deputy chairman and executive director of Steel Hawk Datuk Sharman K Michael, as well as Radiant Capital Sdn Bhd — held by Steel Hawk CEO Salimi Khairuddin and chief operating officer Khairul Nazri Kamarudin.

UOB Kay Hian Securities is the principal adviser, sponsor, underwriter and placement agent for this IPO.