Golden Destinations IPO oversubscribed 2.1 times ahead of ACE Market listing

KUCHING (April 9): ACE Market-bound Golden Destinations Group Bhd’s public portion from its initial public offering (IPO) has been oversubscribed by 2.10 times.

In a filing on Wednesday, the company said it received 3,444 applications for 154.89 million issue shares worth approximately RM69.70 million from the Malaysian public, representing an oversubscription rate of 2.10 times.

The 35 million issue shares allocated to eligible persons were fully subscribed.

Meanwhile, the the private placement tranche of 90 million shares to institutional and selected investors has been fully placed out, as confirmed by UOB Kay Hian (M) Sdn Bhd, the principal adviser, sponsor, underwriter and placement agent for the exercise.

In total, the IPO involves a public issue of 200 million new ordinary shares.

Managing director Mita Lim said the oversubscription indicates investor confidence in the group’s business model and long-term prospects.

“The encouraging support from the investment community further strengthens our commitment to expand our curated travel offerings, reinforce our operational platform and continue delivering high-quality travel experiences through our extensive network of travel partners,” he said in a statement.

UOB Kay Hian (M) Sdn Bhd chief executive officer David Lim said the strong demand reflects recognition of the company’s established brand in the outbound travel segment, as well as its scalable business model and growth potential.

Golden Destinations offers curated travel packages across global destinations and operates primarily on a business-to-business model, serving a nationwide network of travel agents.

The company is expected to list on the ACE Market on April 16.