Wednesday, June 23, 2010

Kimlun's public issue of 11.45m new shares oversubscribed 2.79 times

KUALA LUMPUR: Kimlun Corporation Bhd's public issue of 11.45 million new shares of 50 sen, which were made available for application by the public, was oversubscribed by 2.79 times.

The company said on Wednesday, June 23 that at the close of offer on Monday, there were 2,491 applications for 43.41 million shares with a value of RM42.11 million were received. The offer price was 97 sen.

As for the Bumiputera portion, there were 560 applications for 7.63 million shares, an oversubscription of 0.33 times. For the public portion, there were 1,931 applications for 35.77 million shares, representing an oversubscription of 5.25 times.

All notices of allotment for these shares will be mailed to successful applicants on or before June 28.

Kimlun executive chairman Pang Tin said the oversubscription rate was very heartening as there were a couple of overlapping IPOs and reflects investors' confidence in the group's prospects.

The entire enlarged issued and paid-up capital of Kimlun of RM114.5 million comprising 229 million shares will be listed on the Main Market on Tuesday, June 29.

The listing exercise involved a public issue of 64 million new shares and an offer for sale of 11.3 million ordinary shares.

The public issue of 64 million new shares would raise gross proceeds of RM62.08 million, the bulk of which will be for the CONSTRUCTION [] of factories and purchase of plant and machinery. The balance would be used to purchase a parcel of industrial land, for working capital and listing expenses.

Kimlun budgeted RM35.90 million to build three factories and to purchase plant and machinery to produce tunnel lining segments, spun piles of various sizes and also hollow core slabs and lightweight concrete wall panels.

AmInvestment Bank Bhd is the adviser, sole underwriter and sole placement agent for the listing exercise.

Kimlun is an engineering and construction services provider specialising in infrastructure and building construction, construction management and manufacture of concrete products.

As at April 30, its book order was about RM730.90 million.

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