Volcano IPO Shares Oversubscribed by 176.6 Times

By Toey


– Leading manufacturer of nameplates and plastic injection moulded parts to MNC customers
– Proceeds for purchase of machinery and equipment to expand capacity, grow market share in E&E and automotive industries


KUALA LUMPUR, Mar 26, 2021 – (ACN Newswire) – The shares of Volcano Berhad (VOLCANO) have been oversubscribed by 176.6 times ahead of the Group’s listing on the ACE Market of Bursa Malaysia Securities Berhad (Bursa Malaysia).


Volcano Berhad’s factory in Perai, Penang

“We are extremely grateful for the confidence our investors have in Volcano, our business, prospect and future plans. Our hard work to build a sustainable business for the past 20 years has paid off,” said Managing Director of Volcano, Datuk Ch’ng Huat Seng.

Volcano is raising RM8.75 million from the IPO exercise. From the proceeds, the Group will use RM5.55 million for the purchase of machinery and equipment while RM3.20 million will be used for listing expenses.

“This is just the beginning of our corporate journey. The expansion plan will give a push to the growth of the Group’s business,” Ch’ng explained. “This is also part of the strategy to increase automation and capacity to meet the demand of our new and existing clients in the electrical and electronics (“E&E”) as well as automotive industries.”

For this IPO, a total of 23,838 applications for approximately 1.46 billion new Shares with a value of RM512.82 million were received from the Malaysian public for 8.25 million new Shares made available for application by the Malaysian public, which represents an overall oversubscription rate of 176.60 times.

For the Bumiputera portion, a total of 11,624 applications for 594.43 million new Shares were received, which represents an oversubscription rate of 143.11 times.

For the public portion, a total of 12,214 applications for 870.78 million new Shares were received, which represents an oversubscription rate of 210.10 times.

The 8.25 million new Shares available for application by the eligible directors, key senior management personnel, employees and business associates including any other person who have contributed to the success of Volcano and its subsidiaries have also been fully subscribed.

Its Placement Agent has confirmed that the 43.50 million Shares made available for application by way of private placement have been fully placed out.

The notices of allotment will be posted to all successful applicants on or before 5 April 2021.

TA Securities Holdings Berhad (TA Securities) is the Principal Adviser, Sole Placement Agent, Sole Underwriter and Sponsor for this IPO exercise.

Tan Poh Lin, Vice President for Corporate Finance at TA Securities said, “We are honoured to have been part of Volcano’s IPO journey. We are happy that the IPO has been so well received as this is a testament to the confidence the market has in fundamentally solid businesses. Volcano has a strong track record of over two decades supporting multinational companies (MNCs) who form the bulk of its customer base. This is an endorsement by global brands and well-known firms for Volcano’s dependability and quality of work.”

Volcano’s principal markets are Singapore and Thailand. Overall, the foreign market accounts for more than 95% of overall revenue in the financial year ended 31 December 2020. Multinational companies (MNCs) comprise 90% of the sales including some leading brand names such as Bernina, Hewlett Packard, Fisher & Paykel Thailand, Donaldson Thailand, Sharp Indonesia and Panasonic Thailand.

Volcano’s IPO on Bursa Securities is scheduled on 6 April 2021.

Please contact the below for more information:
Stefani Wan
Tel: +6012 286-1481
Email: s.wan@swanconsultancy.biz