MKHOP aims to raise RM136.4m from IPO
KUALA LUMPUR: MKH Oil Palm (East Kalimantan) Bhd (MKHOP) aims to raise RM136.4 million from its listing on the Main Market of Bursa Malaysia.
MKHOP yesterday launched the prospectus for the initial public offering (IPO) , which involves the issuance of 220 million new shares, or 21.5 per cent of the expanded share capital, at 62 sen each.
Additionally, there is an offer to sell 30.7 million existing shares, constituting three per cent of the enlarged share base, through private placement to chosen investors.
“Of the 220 million new shares, 51.21 million will be open for application by the Malaysian public through balloting, and 168.79 million set aside for private placement to selected investors.”
MKHOP said it would utilise RM42 million, or 30.8 per cent, of the IPO proceeds to acquire land in Indonesia’s East Kalimantan province for an oil palm plantation.
It would also use RM9 million (6.6 per cent) to set up a palm kernel crushing facility to diversify the company’s revenue sources.
“Capital expenditure for existing plantation lands, refurbishment and/ or upkeep of existing palm oil mills, refurbishment and construction of workers and staff housing quarters, and expansion of electricity supply will take up RM42 million, or 30.8 per cent of the total amount raised,” the company added.
MKHOP said RM30 million, (22 per cent) would be utilised for repaying loans, and RM13.4 million, (9.8 per cent) for working capital and to defray listing expenses.
MKHOP chairman Tan Sri Chen Kooi Chiew @ Cheng Ngi Chong said the IPO proceeds would drive its growth strategy, particularly in expanding its plantation landbank.
“This expansion entails acquiring lands adjacent to current estates to capitalise on existing processing and jetty facilities
“We will also invest in new machinery and equipment to enhance operational efficiency, increase processing capabilities, and broaden our product offerings,” he added.