Stratus Global's RM285M IPO oversubscribed 128.8 times, values firm at RM1B
What's the deal? Malaysian factory automation firm Stratus Global's Main Market IPO was oversubscribed by 128.8 times, the company said in a Bursa MalaysiaDealroom has a profile for this one. Try Dealroom → filing. The offering aims to raise RM285 million (about $70 million) at 80 sen per share, valuing the company at RM1 billion on listing.
How big was demand? The public applied for 3.25 billion shares worth RM2.6 billion against just 25 million shares available. The Bumiputera portion was oversubscribed 77.65 times and the non-Bumiputera portion 179.99 times.
What's the endgame? Penang-based Stratus Global makes automated material handling systems for the semiconductor industry, storing silicon wafers in controlled environments. It runs two Bayan Lepas factories with over 44,000 sq ft of production space, currently near full capacity.
Where's the money going? Proceeds are earmarked for facility expansion (RM122.6 million), working capital (RM82.4 million), research and development (RM45 million), and overseas expansion (RM20 million).
Notable holders: Founded in 1998 by chief executive officer Ryo Narisawa, the company will see him retain a significant stake through direct and indirect holdings after listing. There was no offer for sale of existing shares, meaning current shareholders are not cashing out. UOB Kay Hian (M) Sdn Bhd is the principal adviser, underwriter, and placement agent.
Why now? Notices of allotment go out on July 20, with listing on the Main Market of Bursa Malaysia set for July 21.
The signal: The heavy oversubscription reflects strong investor appetite for firms tied to semiconductor supply chains, positioning Stratus Global to expand capacity as chip demand pressures material handling infrastructure.
Read more: Newswav
Image credit: Generated with Gemini
