Matang's IPO to raise RM16.9m

KUALA LUMPUR: Plantation firm Matang Bhd, which is en route to be listed on the ACE Market of Bursa Malaysia Securities Bhd, expects to raise RM16.9 million from its initial public offering (IPO) exercise.
Speaking at the prospectus launch here today, its chairman Datuk Teh Kean Ming said out of the IPO proceeds, RM11.92 million will be used for general working capital requirements to finance the group and its subsidiaries' operations over the next five years.
Teh said the remaining RM2.55 million will be allocated for capital expenditure to improve road system and water drainage within the plantation and purchase of new equipment, RM250,000 for replanting exercise to improve the oil palm trees age profile of Matang Estate, and RM2.18 million for listing expenses.
As part of the IPO, Matang will be issuing 130 million new shares of par value of 10 sen each made available to the Malaysian public via public balloting at the issue price of 13 sen per share.
The group is scheduled for listing on Jan 17, 2017.
Matang is principally involved in the management of plantation estate, sale of fresh fruit bunches and property investment holding.