KUALA LUMPUR: The public portion of Johor Plantations Group Bhd’s initial public offering (IPO), comprising 50 million IPO shares, has been oversubscribed by 2.18 times.
In a statement, the issuing house noted that a total of 9,555 applications were made for 159.01 million IPO shares, representing more than twice the number of allotted shares for the Malaysian public.
A total of 3,184 applications for 39.28 million IPO shares were received for the bumiputra portion, representing an oversubscription rate of 0.57 times.
For the non-bumiputra portion, a total of 6,371 applications for 119.73 million IPO shares were received, representing an oversubscription rate of 3.79 times.
In addition, the 27.5 million IPO shares made available for application by eligible directors, employees and persons who contributed to the success of the group have been fully subscribed.
For the institutional offering, the joint global coordinators and joint bookrunners confirmed that the 312.5 million IPO shares offered to bumiputra investors approved by the Investment, Trade and Industry Ministry, as well as 485 million IPO shares offered to Malaysian and foreign institutional and selected investors have been fully placed out.
“A total of seven cornerstone investors have subscribed for an aggregate of 325.4 million IPO shares or approximately 40.8% of the institutional offering, while the remaining IPO shares available for book-building received an overwhelming demand from Malaysian and foreign institutional and selected investors representing an oversubscription rate of 4.19 times.”
The notices of allotment will be mailed to all successful applicants by July 4, 2024.
“As the final retail price equals to the retail price of 84 sen per IPO share, there will be no refund to be made to the successful applicant under the retail offering,” said the issuing agency.
Johor Plantations is scheduled to be listed on the Main Market of Bursa Malaysia on July 9, 2024, with an enlarged share capital of 2.5 billion shares at 84 sen each, giving it a market capitalisation of RM2.1bil.
Operating predominantly in Johor, the upstream oil palm plantation company manages 23 plantation estates as at May 13, 2024.
This consists of 22 plantation estates in Johor and a plantation estate in Pahang, with a total landbank of 59,781ha and a total oil palm planted area of 55,904ha, representing about 93.5% of the total land area of the group’s plantation estates.
Johor Plantations also owns five palm oil mills to process fresh fruit bunch to produce crude palm oil and palm kernel.
The group is also involved in the plantation supporting services, such as trading of agricultural machineries and parts, and related services.
It has also ventured into the renewable energy business as a renewable energy producer and biomass distributor.
The company plans to raised RM389.76mil through its IPO exercise with the bulk of it or RM196.8mil (50.5%) earmarked for capital expenditure to construct an integrated sustainable palm oil complex and replanting activities.
A further RM167.4mil (43%) of the proceeds will be used to repay bank borrowings. The remainder of the proceeds will be used to defray the estimated listing expenses of RM18.8mil (4.8%) and fund its working capital amounting to RM6.7mil (1.7%).
Johor Plantations stated that it intends to recommend and distribute a dividend of at least 50% of its annual audited net profit.