KUALA LUMPUR (Aug 10): The public portion of Agmo Holdings Bhd's initial public offering (IPO) has been oversubscribed by 120.15 times as investors applied for shares to a value of more than RM500 million.

The home-grown digital solutions and application development specialist, which is scheduled to list on Bursa Malaysia’s ACE Market on Aug 18, said it received 14,277 applications seeking 1.97 billion new shares worth RM511.8 million for the 16.25 million new shares made available to the Malaysian public under its IPO. This represents an oversubscription of 120.15 times.

A total of 5,309 applications for 585.39 million new shares were received under the Bumiputera category, representing an oversubscription rate of 71.05 times, while a total of 8,968 applications for 1.38 billion new shares were received under the public portion, representing an oversubscription rate of 169.25 times.

The 6.5 million new shares available for application by eligible directors, key senior management, employees, and business associates of Agmo and its subsidiaries were fully subscribed.

The group aims to raise RM22.1 million from its IPO exercise and will allocate RM9.47 million of the proceeds towards research and development, sales, marketing and business development.

Some RM6.22 million will be set aside for working capital and related capital expenditure, and RM2.54 million will be allocated for establishing a training and development centre.

Another RM690,000 will be earmarked for regional expansion in Singapore, and RM3.18 million for listing expenses.

Kenanga Investment Bank Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.