KUALA LUMPUR: Johor Plantations Group Bhd (JPG) is slated to go public on the Main Market soon in a listing that is expected to raise RM735mil.
The initial public offering (IPO), with a market capitalisation of RM2.1bil upon listing, will be the largest flotation on Bursa Malaysia in the year-to-date period.
Some RM389.8mil will be raised through a public issue of 464 million new shares, while about RM345.2mil will be raised via an offer for sale of 411 million existing shares at an IPO price of 84 sen per share.
The listing will be on July 9 and the closing of the retail offering portion is on June 24.
Johor Corp’s unit Kulim (M) Bhd, which now owns JPG wholly, will see its stake in the listed entity diluted to 65% of the enlarged share capital.
JPG will be listed at 12.5 times its financial year 2023 earnings multiple and have a net asset per share of RM1.05 based on the enlarged share capital.
Some 50.5% or RM196.83mil of the funds raised from the public issue will be used for the construction of an integrated sustainable palm oil complex and replanting activities.
Meanwhile, 43% or RM167.44mil of the proceeds will be channelled towards the repayment of bank borrowings and 1.7% or RM6.74mil will be for working capital, while the remaining 4.8% or RM18.75mil will be used to pay listing-related expenses.
“We are looking to spend close to RM500mil on the palm oil complex through a joint-venture basis with Fuji Oil Asia and we are looking to assume 100% of the mills.
“The other two facilities, we are looking at potential partnerships as there are good partners who are ready to work with us. The whole complex will run on renewable energy,” JPG managing director Faris Adli Shukery said at a briefing yesterday.
The group currently operates 23 oil palm estates and five palm oil mills, mainly in Johor, he said.
“With a landbank of close to 60,000ha, JPG’s operations are fully accredited with the Malaysian Sustainable Palm Oil and Roundtable on Sustainable Palm Oil certifications,” Faris said.
He said any expansion of its landbank will be in the vicinity of Johor through various potential means, including acquisition or profit-sharing basis, depending on the landowners’ feedback.
“Any acquisition will have to be at the right price, size and location,” Faris said.
Cornerstone investors already on board are 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 Retirement Fund Inc, which make up about 37.2% of the total 875 million IPO shares.
JPG, formerly known as Johor Plantations Bhd, has a dividend policy to distribute at least 50% of its net profit to shareholders.
