Singapore's first listed pawnbroker said its 56mn invitation shares is roughly 4.3 times oversubscribed.
The encouraging performance comes at a time when IPOs are re-scheduling en masse due to risk-laden economic conditions, which the firm attributed to a strong brand name and image.
Maxi-Cash stands to receive roughly S$59.7 million in shares application monies, and a total of S$15.1 million in net proceeds. It said it plans to spend S$6 million of this to expand business operations, "while the balance will be used for general corporate and working capital requirements."
“We are heartened by the favourable response to our IPO by investors in the current volatile market conditions," Mdm Koh Lee Hwee (许丽慧), CEO of the Group said.
"As a leader and innovator in the pawnbroking industry, we believe that we have paved the way in changing the overall image of pawnbroking by allowing customers to enjoy 'bank-like' pawning experiences as well as built a strong brand name in positioning ourselves as an acceptable and attractive alternative source of financing. Moving ahead, we intend to continue to build our brand name and expand our operations in Singapore by increasing the number of pawnshops and/or retail outlets in locations where Maxi-Cash is currently not well represented.”
"The Invitation comprised 2,250,000 Offer Shares to the public for subscription and 53,750,000 Placement Shares," said August Consulting in a release on behalf of Maxi-Cash.
"Based on the total Invitation size of 56,000,000 New Shares and the total valid applications for the 241,450,000 New Shares (comprising valid applications received for 199,130,000 Offer Shares and 42,320,000 Placement Shares, excluding subscriptions by persons mentioned in Rule 428 of the Singapore Exchange Securities Trading Limited (“SGX-ST”) Listing Manual Section B: Rules of Catalist), the Invitation was approximately 4.3 times subscribed. Trading of Maxi-Cash’s shares on Catalist is expected to commence at 9.00 a.m. on 22 June 2012," it said.
"As at the close of the Invitation at 12 noon on 20 June 2012, there were 2,223 valid applications received for the 2,250,000 Offer Shares available to the public for subscription. In total, these applicants applied for an aggregate of 199,130,000 Offer Shares, with application monies received amounting to approximately S$59.7 million. In addition, the Company received valid applications for 53,320,000 Placement Shares," it added.
Canaccord Genuity Singapore Pte. Ltd. (formerly known as Collins Stewart Pte. Limited) is the Sponsor, Underwriter and Placement Agent for the IPO.
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