Sabah’s Life Water IPO oversubscribed by 32.19 times

KUALA LUMPUR (Nov 5): Sabah-based beverage company Life Water Bhd’s shares made available for the public under its initial public offering (IPO) have been oversubscribed by 32.19 times.

Life Water, which is slated for a listing on the Main Market of Bursa Malaysia Securities on Nov 13, said 16,072 applications for 785.38 million new shares valued at RM510.5 million were received from the Malaysian public.

The total shares allocated for them are 23.66 million shares priced at 65 sen each.

Life Water’s IPO of 125.95 million shares comprises a public issue of 97.56 million new shares and an offer for sale of 28.39 million existing shares by way of private placement to selected investors.

The public issue consists of 23.66 million new shares allocated for application by the Malaysian public, 14.20 million new shares for application by the eligible persons, 560,000 new shares for private placement to selected investors, and 59.15 million new shares for private placement to identified Bumiputera investors approved by the Investment, Trade and Industry Ministry.

In a statement today, it said that for the bumiputera portion, a total of 6,814 applications for 275.66 million new shares were received, which represents an oversubscription rate of 22.30 times.

“For the public portion, a total of 9,258 applications for 509.72 million new shares were received, which represents an oversubscription rate of 42.09 times,” it added.

Meanwhile, it said all shares made available for application by the eligible directors, employees and persons have also been fully subscribed.

All new shares allocated for private placement to identified bumiputera investors as well as the new and existing shares set aside for private placement to selected investors have been fully placed out.

Life Water said the notices of allotment will be posted to all successful applicants on Nov 11, 2024.

Life Water expects to raise RM63.42 million through the issuance.

According to its prospectus on Oct 22, based on the company’s enlarged share capital of 473.18 million shares at the IPO price, the company’s market capitalisation will be about RM307.57 million.

About 84 per cent of the total proceeds will be allocated for business expansion.

MIDF Amanah Investment Bank Bhd is the principal adviser, underwriter and placement agent for the IPO.

— Bernama

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