Apex-Pal's public tranche offer 916 times taken up

THE company behind the Sakae Sushi chain, Apex-Pal International, yesterday reported an astounding take-up rate of its initial public offer (IPO), with the public tranche 916 times subscribed.

This is believed to be the highest share subscription rate in Singapore's history, beating Kim Eng Holdings' take-up rate of 784 times when the stockbroking firm was floated on the exchange in February 1990.

However, Apex-Pal's subscription level - though impressive - was distorted by the very small number of shares set aside for the public.

Of the 16.5 million IPO shares offered at 26 cents apiece, only 836,000 shares were sold to the public. The remainder was placed out to institutional investors, valued clients and company employees.

Demand for the shares was so strong that 1.5 million placement shares put up for sale last week on the Internet at ePublic Offer.com were snapped up within three minutes.

Based on the entire 16.5 million offer shares, the IPO was about 47.4 times subscribed. The response meant that very few investors were successful in their applications.

For instance, only one out of 99 applying for 1,000 shares was successful. The odds improved marginally for those who applied for more.

Said Apex-Pal chief executive Douglas Foo: 'We are delighted with the strong reception to our IPO, which is a testament of the faith investors have in the ability of our management team.'

The company will use the estimated net proceeds of $3.4 million from the IPO to establish new outlets, develop new brands and as working capital.

The shares begin trading today