MKH’s plantation arm MKH Oil Palm to offer up to 250.7 mil shares in Main Market IPO

KUALA LUMPUR (April 20): MKH Oil Palm (East Kalimantan) Bhd (MKHOP), the plantation arm of property developer MKH Bhd, is offering up to 250.7 million shares in an initial public offering (IPO) as it seeks to raise funds for business expansion via its listing on Bursa Malaysia’s Main Market.

The 250.7 million shares — 24.5% of its enlarged issued share capital of 1.023 billion — comprise 220 million new shares and an offer for sale of 30.7 million existing shares, its draft prospectus published on the Securities Commission Malaysia website showed.

A total of 51.21 million shares out of the 220 million new shares are allocated to the Malaysian public, of which 25.6 million issue shares will be set aside for Bumiputera public investors. Another 168.79 million shares out of the 220 million new shares are for private placement to selected investors.

The offer shares of 30.7 million will be allocated by way of private placement to selected investors.

MKHOP is principally involved in investment holding and management services. Through its subsidiaries, the group is involved in cultivation of oil palm and production and sale of crude palm oil (CPO) and palm kernel. On Aug 11, 2022, MKHOP was converted into a public company limited by shares.

MKHOP is formerly known as MKH Global Plantation Sdn Bhd and Detik Merdu Sdn Bhd. MKH directly holds 56.73% stake in MKHOP, while the remaining 43.72% is indirectly held via MKH’s wholly owned Metro Kajang (Oversea) Sdn Bhd.

After the IPO, MKHOP is projected to be 63.07%-owned by MKH and subsidiaries, followed by the Malaysian public and selected investors (27.95%), entitled shareholders (4.6%), PT Hikmat Aliran Sukses (3.93%) and Ivakijaya Sdn Bhd (0.45%).

For the financial year ended Sept 30, 2022 (FY2022), MKHOP posted a profit after tax of RM60.14 million, versus RM77.45 million in FY2021 and RM18.69 million in FY2020. As for revenue, the company logged RM315.82 million in FY2022, RM306.61 million in FY2021 and RM282.324 in FY2020.