KUALA LUMPUR (June 24): Johor Plantations Group Bhd has fixed its institutional and final retail price under its initial public offering (IPO) at 84 sen per share.

This was decided following the completion of the bookbuilding process under the institutional offering on Monday, said RHB Investment Bank on behalf of the group in a bourse filing. The retail offering also closed on Monday

Johor Plantations, which is set to be listed on July 9 on Bursa Malaysia's Main Market, will be the second plantation listing this year after its smaller peer MKH Oil Palm (East Kalimantan) Bhd.

The group is expected to have a market capitalisation of RM2.1 billion based on an enlarged issued share capital of RM2.5 billion and IPO price of 84 sen, according to its prospectus.

Johor Plantations aims to raise a total of RM735 million, of which RM345.2 million will be raised via an offer for sale of 411 million existing shares held by its sole shareholder, Kulim (Malaysia) Bhd. Kulim is a wholly owned unit of Johor Corp.

Kulim will retain a 65% stake in Johor Plantations, while the IPO would offer investors up to 35% of Johor Plantations’ enlarged share capital.

RHB Investment Bank is the IPO’s principal adviser, managing underwriter and joint bookrunner with AmInvestment Bank, CIMB Investment Bank, Affin Hwang Investment Bank, and CLSA.