PETALING JAYA: Oil palm plantation player MKH Oil Palm (East Kalimantan) Bhd (MKHOP) has seen strong investor interest in its upcoming initial public offering (IPO), which has been oversubscribed by 8.4 times.
The group will be listed on the Main Market of Bursa Malaysia Securities. Its IPO comprises a public issue of 220 million new ordinary shares at an issue price of 62 sen each, representing 21.5% of its enlarged share capital, with expected proceeds amounting to RM136.4 million.
Additionally, there is an offer for sale of 30.7 million existing shares (offer shares), or 3% of the enlarged shares by way of private placement to selected investors.
MKHOP has received a total of 9,510 applications for 482.9 million shares with a value of about RM299.4 million for the 51.2 million shares allocated to the Malaysian public, representing an oversubscription rate of 8.4 times.
For the Bumiputera category, there were a total of 4,628 applications received for 220.2 million shares, translating into an oversubscription rate of 7.6 times. As for the other Malaysian public category, 4,882 applications were received for 262.6 million shares, representing an oversubscription rate of 9.3 times.
Meanwhile, the private placement of 168.8 million shares for selected investors have been fully placed out.
Notices of allotment will be posted to all successful applicants by Friday.
MKHOP non-independent non-executive chairman Tan Sri Chen Kooi Chiew @ Cheng Ngi Chong has expressed gratitude for the favourable response to the group’s IPO exercise.
“We value the public’s support for our group’s capabilities and future potential. With the IPO funds, we are well-equipped to pursue our expansion strategy, which includes acquiring new land in the vicinity of our existing plantation estates to expand our plantation landbank.”
Furthermore, he said, its efforts will be directed towards enhancing operational efficiency and increasing its processing capabilities and product offerings, supported by investments in new machinery and equipment. A key initiative includes the new facility to crush and press palm kernel to extracti and process into crude palm kernel oil and palm kernel expeller, thereby diversifying the group’s revenue streams.
MKHOP is set to make its debut on Bursa Securities on April 30. Upon listing, its market capitalisation will be RM634.6 million, based on the issue price of 62 sen per share and its enlarged share capital of 1.02 billion shares.
