KUALA LUMPUR, August 17 – KGW Group Berhad (“KGW”), a leading logistics service provider, is thrilled to announce that its Initial Public Offering (IPO) has been met with overwhelming demand, with the share allocation to the Malaysian public oversubscribed by a staggering 50.45 times. The IPO comprised 79,661,800 new ordinary shares made available for application in various categories, including the Malaysian public, eligible directors and employees, private placement to selected investors, and Bumiputera investors approved by the Ministry of Investment, Trade, and Industry, Malaysia (“MITI”).
A total of 1,241,957,600 Issue Shares worth RM260,811,096 were applied for by 11,329 Malaysian public investors, reflecting an oversubscription rate of 50.45 times. Furthermore, applications from the Bumiputera category saw an oversubscription rate of 50.74 times, with 6,868 applicants vying for 624,489,600 Issue Shares. Meanwhile, 617,468,000 Issue Shares were applied for by 4,461 applicants under the other Malaysian public category, representing an oversubscription rate of 50.16 times.The 9,656,000 Issue Shares available for eligible persons were fully subscribed, showcasing strong interest from within the Group.
Dato’ Roger Wong, Managing Director of KGW, expressed his gratitude for the overwhelming response, which he believes reflects positive recognition of the company’s improving fundamentals and bright prospects for growth. Wong emphasized the Group’s commitment to drive further growth and maximize value creation for stakeholders, noting the strong belief from existing investors in the logistics industry’s long-term prospects.
Mr. Ku Mun Fong, Head of Corporate Finance at TA Securities Holdings Berhad, the Principal Adviser, Sponsor, Underwriter, and Placement Agent for the IPO, commended the investors’ appetite for KGW, a company with strong fundamentals and promising growth prospects. Fong highlighted KGW’s potential to capitalize on the increasing logistics requirements globally, especially in and out of Malaysia. TA Securities confirmed that the 28,967,800 Issue Shares by way of private placement to selected investors have been fully placed out.
