Upon its listing on Jan 3, the integrated industrial packaging solutions provider will have a market capitalisation of RM168 million based on the issue price of 30 sen per share and its enlarged share capital of 560 million shares.
In a statement today, L&P also said the listing entails a public issue of 113 million new ordinary shares at an issue price of 30 sen per share, representing approximately 20.2% of its enlarged share capital, with expected proceeds of RM33.9 million.
It said there is also an offer for sale of 33.8 million existing shares (offer shares), representing 6% of the enlarged share capital by way of a private placement to selected investors.
“The group has received a total of 11,740 applications for 891.33 million shares with a value of approximately RM267.4 million for the 24 million shares allocated to the Malaysian public, representing an oversubscription rate of 36.14 times.
“The 13 million shares available for application by eligible directors and employees, as well as persons who have contributed to the success of the group, have also been fully subscribed,” it added.
Meanwhile, L&P highlighted that the private placement of six million shares and 33.8 million offer shares available to selected investors have also been fully placed out.
In addition, it said 70 million shares made available by way of private placements to Bumiputera investors approved by the ministry of international trade and industry have also been fully subscribed.
L&P said notices of allotment will be posted to all successful applicants on or before Jan 3, 2023.
Executive director and CEO Ooi Lay Pheng said the positive response received for the IPO reflected the market’s confidence towards L&P’s business fundamentals and growth prospects.
She said the group would utilise the IPO funds to embark on its expansion plans and capitalise on the growth opportunities in the wooden industrial packaging industry.
“In view of the escalating US-China trade tensions that have resulted in multinational companies relocating their manufacturing facilities to the Southeast Asia region, the listing comes at an opportune time as we are poised to expand and strengthen our market presence domestically and also regionally to Singapore.
“Leveraging our in-house manufacturing capabilities that meet international standards, we stand to benefit from the scaling up of our operations and production output to meet the rising demand for industrial packaging products,” she added.
L&P has 38 years of experience in the industry and is principally involved in the design and manufacturing of wooden industrial packaging products, including boxes, and also provides packing services, circular supply services and trading of related products and raw materials.