03-07-2025
- Business
- Malaysian Reserve
A1 AK Koh IPO draws tepid response from public investors
A1 AK Koh Group Bhd's initial public offering (IPO) on the ACE Market of Bursa Malaysia received a modest response from public investors, with some segments of the exercise seeing undersubscription.
The company reported that total applications from public investors amounted to 46.80 million shares valued at RM11.7 million, slightly exceeding the 42 million shares offered. This reflects a subscription rate of just 1.11 times.
However, the tranche earmarked for Bumiputera investors under the public portion fell short, attracting only 20% of the intended take-up.
The unsubscribed shares were subsequently reallocated to the non-Bumiputera portion, which was oversubscribed by about two times.
Shares reserved for eligible persons were fully taken up.
Meanwhile, the private placement component — comprising both new and existing shares allocated to approved Bumiputera investors, institutions, and selected investors — was fully subscribed following a clawback and reallocation process.
Allotment notices are scheduled to be posted to successful applicants on July 10, with the company's listing set for July 11.
A1 AK Koh, known primarily for its premixed soup spices, will debut on the market with an issue price of 25 sen per share.
The IPO is expected to raise RM27.3 million for the company which is based in Johor and established in 1986.
A1 AK Koh manufactures and markets more than 340 processed food and beverage products, including snacks, noodles, seasonings, canned seafood, and ready-to-drink beverages.
Post-listing, the company is expected to have a market capitalisation of RM210 million, translating to a valuation of approximately 18 times its latest earnings.
AmInvestment Bank is acting as the principal adviser, sponsor, underwriter, and placement agent for the IPO. — TMR
