Malaysian palm oil company Johor Plantations Group launched its initial public offering on Wednesday that will raise 735 million ringgit ($155.89 million) in what would be the country’s biggest IPO in more than two years.
The last big IPO in Malaysia was in March 2022, when dairy producer Farm Fresh raised 1 billion ringgit.
Johor Plantations offered an up to 35% stake, or as much as 875 million shares, in the listing and set an IPO retail price of 84 sen per share, giving it a market capitalisation of 2.1 billion ringgit, according to its IPO prospectus released on Wednesday.
Of the 735 million ringgit raised, about 345.2 million ringgit would go to sole selling shareholder Kulim, a unit of Johor state government agency Johor Corp, the prospectus said.
Kulim will retain 65% stake of Johor Plantations upon listing. The listing date is July 9, according to the prospectus.
The balance 389.8 million ringgit raised via public issue would be used by Johor Plantations for capital expenditure, including the construction of a palm oil complex, and for replanting activities.
“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,” Managing Director Mohd Faris Adli Shukery said.
Cornerstone investors are abrdn Islamic Malaysia, abrdn Malaysia, AHAM Asset Management, AIIMAN Asset Management, Areca Capital, Fortress Capital Asset Management and Kumpulan Wang Persaraan.
RHB Investment Bank is the principal adviser of the IPO. The bank is also the joint global coordinator, joint bookrunner and joint underwriter with AmInvestment Bank, CIMB, and CLSA.
CLSA is the joint global coordinator and joint bookruner, while Affin Hwang Investment Bank is the joint bookrunner and underwriter.
Reuters