Sealink IPO slightly oversubscribed

THE initial public offering of Sealink International Bhd, a shipbuilder, was oversubscribed by merely three per cent as investor sentiment was hit by a weak stock market.

Sealink plans to raise RM141.7 million from a public issue of 113.37 million shares of 50 sen par value - issued at RM1.25 apiece, to finance its expansion.

Existing shareholders also made an offer for the sale of 15 million shares at the same price.

The public has applied for 29.22 million shares with 882 applications, compared with the 28.37 million available for them. This represents an oversubscription rate of 0.03 times, Malaysian Issuing House Sdn Bhd (MIH) said in a press release yesterday.

The sole placement agent has also confirmed that the 59.5 million private placement shares have all been taken up, MIH said.

In addition, 13.28 million unsubscribed shares initially reserved for company staffs and directors have also been placed out to select investors, MIH said.

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