KUALA LUMPUR: Matrix Concepts Holdings Bhd, a leading property developer in Negeri Sembilan, has received overwhelming response for its Initial Public Offering (IPO) on the Main Market of Bursa Malaysia Securities Bhd, with its public tranche oversubscribed by 11.3 times.
Matrix Concepts, which is slated to be listed on Bursa Malaysia's Main Market on May 28, received a total of 12,043 applications for 123.2 million shares with a total value of RM270.9 million for the public tranche of 10.0 million new shares of the IPO.
Matrix Concepts Chairman Datuk Mohamad Haslah bin Mohamad Amin said in a statement today: "The public's favour towards our IPO signifies the investing community's confidence in our capability to tap into the growth opportunities of the Greater Klang Valley conurbation that includes Seremban as a satellite city.
"We believe that our upcoming listing on the Main Market of Bursa Malaysia will not only take us to a whole new dimension in our corporate history as we embark on a journey as a listed entity, but also help us gain even more confidence from property purchasers."
Matrix Concepts is also the developer of Bandar Sri Sendayan, its flagship township development in Seremban, Negeri Sembilan.
Spanning 5,233 acres (2113.7 ha.) with an estimated gross development value of RM5 billion, it has the potential to be the next growing residential enclave in Negeri Sembilan.
"We aim to make it the preferred address to stay, work and play synonymous with the finer lifestyle appreciated by the increasingly discerning community in Negeri Sembilan.
"With an expected catchment population of more than 100,000 people upon full completion, it is poised to become a thriving and vibrant hub in the years to come," he said.
Matrix Concepts' IPO entails a public issue of 62.5 million new ordinary shares and an offer-for-sale of 37.5 million vendor shares, at an issue price of RM2.20 per share.
Of the public issue of 62.5 million new ordinary shares, 10 million will be allotted for public balloting; 8.8 million for eligible directors, employees and business associates of the group; and the remaining 43.7 million shares for private placement.
As for the 37.5 million vendor shares, 32.5 million will be allocated for Bumiputera investors approved by the Ministry of International Trade and Industry, while five million will be set aside for private placement to selected investors.
The IPO would raise RM137.5 million in proceeds for the group, of which RM55 million will be allocated for the construction of infrastructure and common facilities at Bandar Sri Sendayan, another RM55 million for working capital, followed by RM10 million for the construction of the 1Sendayan Clubhouse.
The remaining RM11 million and RM6.5 million will be used for repayment of bank borrowings and listing expenses respectively.
Hong Leong Investment Bank Bhd is the principal adviser, managing underwriter, co-underwriter and co-placement agent for the IPO, while Kenanga Investment Bank Bhd is the co-underwriter and co-placement agent.