DPI holdings public portion IPO oversubscribed by 23 times
KUALA LUMPUR, Dec 20 (Bernama) — Aerosol paints producer, DPI Holdings Bhd’s public portion of its initial public offering (IPO) has been oversubscribed by 23 times.
In a statement today, the company said 7,368 applications were received for 585.2 million shares, worth RM146.3 million, for its public tranche, which entailed 24.3 million shares for application.
The IPO involved 26.5 million new shares at 25 sen per share, raising RM31.6 million in proceeds.
Of the total proceeds, RM23.5 million would be utilised for the expansion of production capacity, RM3.0 million for the extension of consumer reach through marketing and advertising activities while RM1.3 million would be used to develop a range of new products.
The company is enroute for listing on the ACE Market of Bursa Malaysia Securities Bhd on Jan 7, 2019.
Executive Chairman & Managing Director Peter Chai @ Choy Mui Seng said the oversubscription from the Malaysian public and the overwhelming take-up from investors for the private placement portion was a huge vote of confidence in the company’s business model and the growth potential displayed by DPI.
“With local and international demand for aerosol paints on the rise, we are looking towards doubling our production capacity in order to meet the anticipated increase,” he said.
The group intended to construct a new factory with four new fully-automated aerosol filling lines, as well as upgrade the production lines in the existing plant into fully-automated aerosol filling lines, which would be adjacent to the existing plant in Johor.
Barring unforeseen circumstances, the new factory was expected to commence operations in the first half of 2020, it added.
In a statement today, the company said 7,368 applications were received for 585.2 million shares, worth RM146.3 million, for its public tranche, which entailed 24.3 million shares for application.
The IPO involved 26.5 million new shares at 25 sen per share, raising RM31.6 million in proceeds.
Of the total proceeds, RM23.5 million would be utilised for the expansion of production capacity, RM3.0 million for the extension of consumer reach through marketing and advertising activities while RM1.3 million would be used to develop a range of new products.
The company is enroute for listing on the ACE Market of Bursa Malaysia Securities Bhd on Jan 7, 2019.
Executive Chairman & Managing Director Peter Chai @ Choy Mui Seng said the oversubscription from the Malaysian public and the overwhelming take-up from investors for the private placement portion was a huge vote of confidence in the company’s business model and the growth potential displayed by DPI.
“With local and international demand for aerosol paints on the rise, we are looking towards doubling our production capacity in order to meet the anticipated increase,” he said.
The group intended to construct a new factory with four new fully-automated aerosol filling lines, as well as upgrade the production lines in the existing plant into fully-automated aerosol filling lines, which would be adjacent to the existing plant in Johor.
Barring unforeseen circumstances, the new factory was expected to commence operations in the first half of 2020, it added.
DPI’s IPO oversubscribed by 23 times
KUALA LUMPUR: Aerosol paints producer DPI Holdings Bhd received positive response for its initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd, with public portion oversubscribed by 23 times.
DPI received a total of 7,368 applications for 585.2 million shares worth a total of RM146.3 million for its public tranche, which entails a total of 24.3 million shares for application.
Executive chairman and managing director Peter Chai @ Choy Mui Seng said the oversubscription from the Malaysian public and the overwhelming take-up from investors for the private placement portion is a huge vote of confidence in the group’s business model, and the growth potential displayed by DPI.
“With local and international demand for aerosol paints on the rise, we are looking towards doubling our production capacity in order to meet the anticipated increase,” he said in a statement.
DPI is scheduled to be listed on the ACE Market of Bursa Malaysia on January 7, 2019.
The group intends to construct a new factory with four new fully-automated aerosol filling lines, as well as upgrade the production lines in the existing plant into fully- automated aerosol filling lines. The new factory would be adjacent to the existing plant in Johor.
DPI said the group had submitted its building plans to the relevant authorities and is now awaiting approval to begin construction of the new plant.
It said production in the new factory is set to commence in the first half of 2020.
DPI’s IPO entails the issuance of 126.5 million new shares at an issue price of 25 sen per share, raising RM31.6 million in IPO proceeds.
Of the total IPO proceeds of RM31.6 million to be raised, RM23.5 million would be utilised for capital expenditure towards expansion of production capacity, RM3 million for extension of consumer reach through marketing and advertising activities, while RM1.3 million would be for development of new product range.
Affin Hwang Investment Bank Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.
DPI received a total of 7,368 applications for 585.2 million shares worth a total of RM146.3 million for its public tranche, which entails a total of 24.3 million shares for application.
Executive chairman and managing director Peter Chai @ Choy Mui Seng said the oversubscription from the Malaysian public and the overwhelming take-up from investors for the private placement portion is a huge vote of confidence in the group’s business model, and the growth potential displayed by DPI.
“With local and international demand for aerosol paints on the rise, we are looking towards doubling our production capacity in order to meet the anticipated increase,” he said in a statement.
DPI is scheduled to be listed on the ACE Market of Bursa Malaysia on January 7, 2019.
The group intends to construct a new factory with four new fully-automated aerosol filling lines, as well as upgrade the production lines in the existing plant into fully- automated aerosol filling lines. The new factory would be adjacent to the existing plant in Johor.
DPI said the group had submitted its building plans to the relevant authorities and is now awaiting approval to begin construction of the new plant.
It said production in the new factory is set to commence in the first half of 2020.
DPI’s IPO entails the issuance of 126.5 million new shares at an issue price of 25 sen per share, raising RM31.6 million in IPO proceeds.
Of the total IPO proceeds of RM31.6 million to be raised, RM23.5 million would be utilised for capital expenditure towards expansion of production capacity, RM3 million for extension of consumer reach through marketing and advertising activities, while RM1.3 million would be for development of new product range.
Affin Hwang Investment Bank Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.
DPI’s IPO oversubscribed by 23 times
DPI’s IPO oversubscribed by 23 times
