In a prospectus released today, the company said the 250.7 million shares represented 24.5% of its enlarged share capital of 1.023 billion shares. The new shares will consist of 220 million new shares and 30.7 million existing shares.
Of the new shares, 51.21 million will be allocated to the Malaysian public, of which 25.6 million shares will be set aside for Bumiputera public investors.
The company, which has yet to reveal the date and issue price of its IPO, will allocate the remaining 168.79 million new shares and 30.7 million existing shares to selected investments.
The proceeds accrued from the public issue are to be used by MKHOP for, among others, capital expenditure on its existing plantation lands as well as its land bank expansions.
MKHOP comprises mainly two palm oil estates, namely PT Maju Kalimantan Hadapan (PT MKH) and PT Sawit Prima Sakti (PT SPS). The group produces and sells ISPO-certified crude palm oil (CPO) as well as palm kernels at its 18,205-hectare plantation in East Kalimantan, Indonesia.
Formerly known as MKH Global Plantation Sdn Bhd and Detik Merdu Sdn Bhd, MKHOP was converted into a public company limited by shares on Aug 11, 2022.
While the group is mainly involved in investment holding and management services, it has involvement in cultivation of palm oil and production and sale of CPO and palm kernel through its subsidiaries.
Currently, MKHOP is 56.73% owned by property developer MKH Bhd (MKH) while the remaining 43.27% is held by MKH wholly owned subsidiary Metro Kajang (Oversea) Sdn Bhd.
Following the IPO, it is projected that MKH and its subsidiaries will own 63.07% of MKHOP. The other expected stakeholders are the Malaysian public and selected investors (27.95%), entitled shareholders (4.6%), PT Hikmat Aliran Sukses (3.93%) and Ivakijaya Sdn Bhd (0.45%).
It posted a profit after tax of RM60.14 million in the 2022 financial year (FY2022), 22.35% lower than the RM77.45 million posted in FY2021. However, its revenue grew from RM306.61 million in FY2021 to RM315.82 million in FY2022.
Within 24 months of the listing date, the group plans to expand its oil palm plantation business by acquiring additional land located in close proximity to its current oil palm plantation estates in Kutai Kartanegara, East Kalimantan, for better coordination of operational and logistics management.
“We intend to purchase new machinery and equipment to enhance the efficiency of our FFB (fresh fruit bunches) harvesting activities and palm oil milling activities for the production of CPO and palm kernel which will eventually improve the financial performance of our group,” MKHOP added.
M&A Securities Sdn Bhd has been appointed as the principal adviser for the IPO.