After the milestone Petronas Chemicals Group Bhd IPO, I next applied for the IPO of little-known Careplus Group Berhad. At 23 sen a unit, it was cheap as cheap gets. Its bosses were folks from Seremban and it was an all-Malaysian, all local company. This was an ACE company and ACE companies unlike Main Board companies on Bursa don't need to have 3-5 years' profit track record to qualify for listing on Bursa. I even felt a tinge of remorse after applying for it as this company seemed too tiny to really make any significant impact in the market. They make rubber gloves, mostly latex rubber gloves, not the nitrile ones although in its prospectus the company had said that it was venturing into nitrile gloves with new machinery purchased from the proceeds of this IPO. Surprise surpise, my application and another application i know of has both been REJECTED today. this means that the retail over-subscription rate for Careplus' IPO is probably quite impressive. More impressive than even big brother Petronas Chemicals, i'm begining to believe. I didn't even get 1 blessed unit of Careplus Group Berhad out of the 20,000 units which i applied for. The company debuts on the Bursa ACE market on 6th December so i'm really curious as to how it will perform on market opening day. Unlike the Petronas Chemicals Group Berhad IPO which raked in billions of Ringgits, Careplus is projecting IPO proceeds of around RM15 million only.
POST-BLOG NOTE: little David falls the mighty Goliath. The Careplus Group Berhad IPO was oversubscribed by 84.67 times for the public category while the Petronas Chemicals Group Berhad IPO was oversubscribed by 2.98 times for the public category.
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