Trans-China Automotive IPO 1.2 times subscribed

TRANS-CHINA Automotive Holdings (TCA)'s shares for its initial public offering (IPO) were subscribed by 1.2 times, the China-based automobile dealership group said on Wednesday (Nov 10).

The 85 million invitation shares at S$0.23 per share consisted of 2.9 million shares by public offer and 82.1 million shares by way of placement.

At the close of the invitation at noon on Tuesday (Nov 9), there were 586 valid applications for the 2.9 million shares available to the public. In total, applicants applied for some 23.2 million shares worth S$5.3 million, resulting in the public tranche being about 8 times subscribed. Meanwhile, all 82.1 million placement shares available were validly subscribed for, amounting to some S$18.9 million.

TCA plans to use the bulk of the S$16.3 million in net proceeds to expand its dealerships, showrooms and service centres in cities where it has existing operations. The remaining S$3 million will go towards growing its dealership network to new regions - among other things - while another S$2.3 million will be channelled towards general working capital.

TCA's chief executive officer Francis Tjia said: "As we embark on a new road ahead, we hope our investors will continue to journey with us as we execute our growth plans to lift our group to a new level."

RHT Capital is the issue manager and full sponsor, while UOB Kay Hian is the underwriter and placement agent for the IPO.

TCA will start trading on the Catalist-board of the Singapore Exchange at 9am on Thursday (Nov 11).