MKH Oil Palm (East Kalimantan) Behad has seen strong investor interest in its upcoming initial public offering after it informed that it has been oversubscribed by 8.4 times ahead of its listing on the Main Market of Bursa Malaysia Securities Berhad.
The Group’s IPO exercise comprises a public issue of 220.0 million new ordinary shares in MKHOP at an issue price of RM0.62 per Share, representing 21.5% of its enlarged share capital, with IPO proceeds of RM136.4 million. Additionally, there is also an offer for sale of 30.7 million existing shares, or 3.0% 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 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. 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.
The private placement of 168.8 mil Shares for selected investors have also been fully placed out.
MKHOP is set to debut on the Main Market of Bursa Securities on Tuesday, 30 April 2024. Upon listing, MKHOP’s market capitalisation will be RM634.6 million, based on the issue price of RM0.62 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 Berhad is the Joint Underwriter and Joint Placement Agent, and AmInvestment Bank Berhad is the Joint Placement Agent.
