KUALA LUMPUR: Johor Plantations Group Bhd expects to raise a total of RM735.0 million from its upcoming initial public offering on the Main Market of Bursa Malaysia on July 9, 2024.
About 50.5 per cent of the total proceeds from the public issue have been earmarked for the construction of an integrated sustainable palm oil complex and replanting activities.
Meanwhile, 43.0 per cent will be channelled towards the repayment of bank borrowings and 1.7 per cent will be for working capital.
The remaining proceeds will be used for listing related expenses.
Of the total, RM389.8 million will be raised via a public issue of 464.0 million new ordinary shares.
Meanwhile, RM345.2 million will be raised via offer for sale of 411.0 million existing shares at the IPO price of RM0.84 per share.
The company has secured seven cornerstone investors namely abrdn Islamic Malaysia Sdn Bhd, abrdn Malaysia Sdn Bhd, AHAM Asset Management Bhd, AIIMAN Asset Management Sdn Bhd, Areca Capital Sdn Bhd, Fortress Capital Asset Management (M) Sdn Bhd and Kumpulan Wang Persaraan (Diperbadankan), which make up approximately 37.2 per cent of the total IPO share.
Johor Plantations managing director Mohd Faris Adli Shukery said through the years, the company has evolved from modest beginnings to having a significant presence in the palm oil industry.
He added that the company continues to meet stakeholder needs and has several initiatives in the pipeline designed to increase its competitiveness, focusing on increasing its crude palm oil (CPO) production and expanding through downstream ventures.
"We intend to diversify to meet our future growth aspirations by becoming a fully integrated palm oil producer through our venture into the downstream segment, which focuses on specialty oils and fats.
"The IPO is a strategic move that will unlock our full potential and deliver long-term value to our stakeholders," he said in a statement.
Based on the enlarged issued share capital of 2.5 billion shares and IPO price of RM0.84 per share, the company's expected market capitalisation is RM2.1 billion upon listing.
The public issue portion of the IPO will be made available for subscription from today and application will close on June 24 at 5pm.
RHB Investment Bank Bhd is the principal adviser, joint global coordinator, joint bookrunner, managing underwriter and joint underwriter for the IPO exercise.
