GB Bond IPO Sees 8.22x Oversubscription on ACE Market
Industrial adhesive maker GB Bond Holdings secured 5,333 applications for its 190.02 million share IPO, valuing the firm at RM103.08 million.
Key points
- GB Bond Holdings' IPO was oversubscribed 8.22 times with 5,333 applications received for 190.02 million shares.
- The Bumiputera portion saw a 5.54 times oversubscription, while the general public portion reached 10.89 times.
- The company is listed on Bursa Malaysia’s ACE Market with a projected market capitalization of RM103.08 million.
GB Bond Holdings Bhd has concluded its initial public offering with an overall oversubscription rate of 8.22 times, ahead of its debut on Bursa Malaysia’s ACE Market on October 1. The industrial adhesive manufacturer disclosed in a filing that it received 5,333 applications for the 190.02 million new shares offered to the Malaysian public, significantly exceeding the 20.62 million shares available in that segment.
The offering was structured with a price of 25 sen per share, comprising a public issue of 64.3 million new shares and an offer for sale of 42.88 million existing shares. According to The Edge Malaysia, the company aims to capitalize on this demand to solidify its market position in sectors ranging from paper packaging to glove coatings, with a post-listing market capitalization projected at approximately RM103.08 million based on its enlarged share capital of 412.3 million shares.
Public and Bumiputera allocation details
Demand was split between the Bumiputera and general public portions, with the former receiving 2,241 applications for 67.44 million shares. This segment achieved an oversubscription rate of 5.54 times, while the remaining Malaysian public portion attracted 3,092 applications for 122.58 million shares, resulting in a 10.89 times oversubscription. All allocated shares in both categories were fully placed following the application of relevant clawback and reallocation provisions.
Additionally, 4.12 million new shares reserved for eligible directors and employees were fully subscribed. The remaining 30.9 million existing shares offered via placement to selected investors were also entirely taken up, indicating broad institutional interest in the company’s equity structure.
Business scope and valuation context
GB Bond manufactures adhesives for diverse industries, including woodworking, fabric lamination, renovation, and glove coatings. The company’s expanded share capital of 412.3 million shares, each valued at 25 sen, underpins its estimated market capitalization of RM103.08 million. This valuation reflects the total equity value post-IPO, incorporating both new capital raised and existing holdings transferred through the offer for sale.
Advisory and underwriting structure
Malacca Securities served as the principal adviser, sponsor, underwriter, and placement agent for the transaction. The firm managed the entire process from advising on the share structure to ensuring the full placement of both new and existing shares to the public and selected investors, facilitating the company’s entry into the public equity market.
