KUALA LUMPUR, April 19 — MKH Oil Palm (East Kalimantan) Bhd’s initial public offering (IPO) has garnered strong investor interest as it has been oversubscribed by 8.4 times ahead of its listing on the Main Market of Bursa Malaysia Securities Bhd.
In a statement today, the oil palm plantation player said its IPO exercise comprises a public issue of 220 million new ordinary shares at an issue price of 62 sen per share, representing 21.5 per cent of its enlarged share capital, with proceeds totalling RM136.4 million.
Additionally, the group said there is also an offer for sale of 30.7 million existing shares, or 3.0 per cent of the enlarged shares, by way of private placement to selected investors.
“The group has received a total of 9,510 applications for 482.9 million shares with a value of approximately 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,” it said.
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, said the group.
“The private placement of 168.8 million shares for selected investors have also been fully placed out,” it added.
Notices of allotment will be posted to all successful applicants by April 26, 2024.
MKH Oil Palm is set to debut on the Main Market on April 30, 2024.
It said that upon listing, the group’s 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.
M&A Securities Sdn Bhd is the adviser, managing underwriter, joint underwriter and joint placement agent of the IPO exercise, while Kenanga Investment Bank Bhd is the joint underwriter and joint placement agent, and AmInvestment Bank Bhd is the joint placement agent. — Bernama
