Johor Plantations Sets Ipo At 84 Sen, Targets Rm735 Mln

KUALA LUMPUR, June 12 (Bernama) -- Johor Plantations Group Bhd (JPG), an upstream palm oil plantation company, has set its initial public offering (IPO) price at 84 sen per share, aiming to raise RM735 million.

The IPO comprises a public issue of 464 million new shares and an offer for sale of up to 411 million existing shares.

JPG plans to list on the Main Market of Bursa Malaysia on July 9, 2024.

Managing director Mohd Faris Adli Shukery said the group's objective is to attract investors and enhance its brand by consistently delivering sustainable growth and long-term value for stakeholders through the IPO.

“Approximately 50.5 per cent of the total proceeds will fund the construction of an integrated sustainable palm oil complex and replanting activities. 

“We are developing a greenfield complex with full integration, including a mill, refinery, and crushing plant in the same area. This simplifies the supply chain,” he said during the press conference after today's prospectus launch. 

As of May 13, 2024, JPG owns 23 oil palm estates, comprising 22 in Johor and one in Pahang, covering a total landbank of 59,781 hectares.

Meanwhile, 43.0 per cent will go towards repaying bank borrowings, 1.7 per cent for working capital, and the rest for listing-related expenses, he added. 

Based on the enlarged issued share capital of 2.5 billion shares and an IPO price of 84 sen per share, the company's market capitalisation will be RM2.1 billion, making it the largest IPO listing on Bursa Malaysia Securities Bhd year-to-date. 

Cornerstone investors include 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 the Retirement Fund Inc (KWAP), collectively holding approximately 37.2 per cent of the total 875 million IPO shares. 

Mohd Faris said JPG also adopts a dividend policy to distribute at least 50.0 per cent of its annual audited profit after tax to shareholders.

“Over the years, JPG has grown significantly in the palm oil industry. We have several initiatives in the pipeline to increase competitiveness, focusing on boosting crude palm oil production and expanding downstream ventures. 

“We intend to diversify and become a fully integrated palm oil producer through downstream ventures, focusing on specialty oils and fats. The IPO is a strategic move to unlock our full potential and deliver long-term value to stakeholders,” he added.

-- BERNAMA