KGW IPO: Oversubscribed

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Kuala Lumpur, July 21: KGW Group Berhad (“KGW” or the “Group”), a leading provider of logistics services, has announced a resounding success for its Initial Public Offering (IPO) with an oversubscription rate of 50.45 times. The IPO, which comprised 79,661,800 new ordinary Shares (“Issue Shares”), received an overwhelming response from investors, showcasing their strong interest in the Group’s growth prospects.
The breakdown of the IPO allocation is as follows:

  • 24,140,000 Issue Shares were made available for application by the Malaysian Public;
  • 9,656,000 Issue Shares were reserved for application by eligible directors, employees, and individuals who have contributed to the Group’s success (“Eligible Persons”);
  • 7,241,800 Issue Shares were offered through private placement to selected investors;
  • 38,624,000 Issue Shares were allocated to Bumiputera investors approved by the Ministry of Investment, Trade and Industry, Malaysia (“MITI”); and
  • 43,452,000 Offer Shares were made available through private placement to selected investors and Bumiputera investors approved by MITI.

The Malaysian Public demonstrated remarkable enthusiasm, submitting a total of 11,329 applications for 1,241,957,600 Issue Shares, amounting to a value of RM260,811,096. This represented an impressive oversubscription rate of 50.45 times. Similarly, in the Bumiputera category, KGW received a total of 6,868 applications for 624,489,600 Issue Shares, with an oversubscription rate of 50.74 times. Additionally, 4,461 applications for 617,468,000 Issue Shares were received under the other Malaysian Public category, resulting in an oversubscription rate of 50.16 times.
Meanwhile, all 9,656,000 Issue Shares available for application by Eligible Persons were fully subscribed, indicating their unwavering belief in the Group’s future prospects.
Datuk Roger Wong, Managing Director of KGW, expressed gratitude for the overwhelming response from investors, stating, “We are humbled by the overwhelming response from investors that are interested in us. This further shows that we have gained positive recognition for our improving fundamentals, and with our bright prospects, we firmly believe that we can drive the Group’s growth to the next level. We look forward to unlocking more potential of the Group in order to maximize value creation for our stakeholders. In addition, we are also proud to say that our existing investors had strong belief in the long-term prospects of the overall logistics industry.”
Datuk Ku Mun Fong, Head of Corporate Finance of TA Securities Holdings Berhad, the Principal Adviser, Sponsor, Underwriter, and Placement Agent for the IPO, remarked, “The response to KGW’s IPO is a reflection of investors’ appetite for a company like KGW with strong fundamentals coupled with prospects for growth pivotal in the nation economy building logistics industry. Further, with its listing on the ACE Market of Bursa Securities, KGW is poised to ride on the prospects and growth in the logistics requirements in various different parts of the world, particularly in and out of Malaysia.”
TA Securities confirmed the full placement of the 28,967,800 Issue Shares through private placement to selected investors.
The listing of KGW Group Berhad on the ACE Market of Bursa Securities is scheduled for 1 August 2023, and the company is poised to embark on its growth journey fueled by the overwhelming support from investors.

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