KUALA LUMPUR: MKH Oil Palm (East Kalimantan) Bhd's initial public offering (IPO) has been oversubscribed by 8.43 times ahead of its listing on the Main Market of Bursa Malaysia on April 30.
MKH Oil received a total of 9,510 applications for 482.9 million shares worth RM299.4 million for the 51.2 million shares allocated to the 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.
MKH Oil chairman Tan Sri Chen Kooi Chiew said with the IPO funds, the company is well-equipped to pursue its expansion strategy, which includes acquiring new land in the vicinity of its existing plantation estates to expand its plantation landbank.
"Furthermore, our efforts will be directed towards enhancing our operational efficiency and increasing our processing capabilities and product offerings, supported by investments in new machinery and equipment.
"A key initiative includes the new palm kernel (PK) crushing facility to crush and press PK for extraction and processing into crude palm kernel oil and palm kernel expeller, thereby diversifying our revenue streams," he said in a statement.
M&A Securities Sdn Bhd is the adviser, managing underwriter, joint underwriter and joint placement agent for the IPO exercise.
Kenanga Investment Bank Bhd is the joint underwriter and joint placement agent, while AmInvestment Bank Bhd is the joint placement agent for the IPO.