Matang ap­points M&A Se­cu­ri­ties as IPO un­der­writer

The Sun (Malaysia) - - SUNBIZ -

KUALA LUMPUR: Matang Bhd, which is en route to a list­ing on the ACE Mar­ket of Bursa Malaysia Se­cu­ri­ties Bhd (Bursa Se­cu­ri­ties) in the first quar­ter of 2017, signed an un­der­writ­ing agree­ment with M&A Se­cu­ri­ties Sdn Bhd yes­ter­day in con­junc­tion with its ini­tial pub­lic of­fer­ing (IPO) ex­er­cise.

The IPO will in­volve the is­suance of 130 mil­lion new shares of 10 sen each in Matang rep­re­sent­ing 7.18% of the en­larged is­sued and paid-up share cap­i­tal of Matang af­ter list­ing.

M&A Se­cu­ri­ties will un­der­write the en­tire 130 mil­lion new Matang shares to be of­fered to the Malaysian pub­lic via pub­lic bal­lot­ing.

“The ap­point­ment of M&A Se­cu­ri­ties as the un­der­writer brings Matang an­other step for­ward in its IPO ex­er­cise. Matang is grate­ful to have M&A Se­cu­ri­ties for its wealth of ex­pe­ri­ence and ex­per­tise in the role as an ad­viser as well as un­der­writer for the IPO ex­er­cise of Matang, all of which are in­valu­able to the com­pany in achiev­ing the list­ing sta­tus,” added.

To­day, Matang Group owns a 1,096ha oil palm plan­ta­tion es­tate that spans across Sega­mat and Ledang Dis­trict in Jo­hor. It also owns a 1.3ha lease­hold in­dus­trial land with three units of de­tached build­ings in Kawasan Perindus­trian Larkin in Jo­hor Baru as well as about 5,016 sq m of free­hold land in Tangkak, Ledang Dis­trict, Jo­hor.

“The list­ing (of Matang shares) will en­hance the com­pany’s pro­file and en­able us to tap into the eq­uity cap­i­tal mar­ket to raise funds as well as to pro­vide us the fi­nan­cial flex­i­bil­ity to im­ple­ment our strat­egy to carry out re­plant­ing ex­er­cises for long-term sus­tain­abil­ity and growth,” Matang chair­man Datuk Teh Kean Ming said.

Pro­ceeds from the IPO will be used pri­mar­ily for gen­eral work­ing cap­i­tal re­quire­ments par­tic­u­larly for Matang Group’s day-to-day op­er­a­tions as well as for the pur­chase of fer­tilis­ers.

Part of the pro­ceeds will also be used for re­plant­ing ex­er­cises to im­prove the over­all age pro­file of the oil palm trees in Matang Es­tate, as well as for cap­i­tal ex­pen­di­ture to en­hance ef­fec­tive­ness in op­er­a­tions and to de­fray list­ing expenses.

M&A Se­cu­ri­ties man­ag­ing di­rec­tor of cor­po­rate fi­nance Datuk Bill Tan said the list­ing will pro­vide the share­hold­ers the op­por­tu­ni­ties to par­take in the fu­ture growth po­ten­tial of a new lo­cal plan­ta­tion busi­ness.

“The list­ing will un­doubt­edly put Matang in a favourable po­si­tion to cap­ture fu­ture growth op­por­tu­ni­ties in the plan­ta­tion in­dus­try in Malaysia. Fur­ther­more, the up­ward trend of crude palm oil price from a low of about US$480 per tonne in Septem­ber last year may of­fer a good chance for top line growth for the com­pany,” Tan added.

Crude palm oil is cur­rently traded at over US$650 (RM2,899) per tonne.

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