In a media statement issued today, the company said the initial public offering (IPO) would entail the issuing of 113 million new shares, representing 20.2% of its enlarged issued share capital upon listing.

Of those shares, 33.8 million or 6% of the enlarged share capital, will be offered to selected investors through private placement.

A total of 24 million shares, or 4.3%, will be made available to the public while 13 million, or 2.3%, will be offered to eligible directors, employees and others “who have contributed to the success of the L&P Global group”, the statement said.

It said selected and bumiputera investors that have been given the green light by the ministry of international trade and industry will be considered for the remaining 13.6% or 76 million shares.

L&P Global is primarily involved in the design and manufacturing of wooden industrial packaging products such as boxes, crates and pallets.

It also provides packing services and trading of related products and raw materials as value-added services to its customers.

L&P Global counts among its clientele several multinational corporations from industries such as renewable energy, electronics and semiconductors, food, automotive as well as packaging.

Apart from Malaysia, which is its primary market, L&P Global also operates from Vietnam.

Executive director and CEO Ooi Lay Pheng said the economic recovery that stemmed from the transition into the endemic phase of Covid-19 had led to a growth in warehousing and logistics needs and, by extension, raised the demand for wooden industrial packaging.

She said the ongoing US-China trade war had also led to an increasing number of multinational companies relocating their production facilities from China to countries such as Malaysia and Vietnam.

“The proceeds from the listing will enable us to strengthen our market presence and operational capabilities as well as give us the financial flexibility that will allow us to capitalise on the attractive prospects ahead,” she added.