Upcoming IPO available for private placement registration:
MKHOP
MKH Oil Palm (East Kalimantan) Berhad
MKHOP is an upstream oil palm plantation group and the operations are based in East Kalimantan, Indonesia. This company is principally involved in the cultivation of oil palm and production and sale of CPO and PK.
IPO Snapshot:
1,023.6 million enlarged share capital
Minimum 50% of net profit intended dividend payout
Key investment highlight:
Plantations are located in prime area within the vicinity of the new capital city of Indonesia in East Kalimantan.
Plantations are situated along the equator with adequate levels of rainfall and sunshine.
Favourable age profile of trees - 92.7% of trees in prime mature stage.
Operational efficiency and crop quality improved with the implementation of mechanisation and technology.
The industry receives strong support from the Indonesian Government and we have good cooperative ties with the local authorities.
Environmental, social and governance("ESG") principles embedded in all aspects of operations.
IPO Private Placement Opportunity:
Investing in IPO listing stocks is a lucrative opportunity for investors to potentially reap significant profits. These stocks belong to companies not yet listed on stock exchanges. Investing in unlisted shares in Malaysia, once a domain for the financially elite, is now accessible. This article will guide you through making your first IPO private placement investment from the MQ Trader / I3investor platform.
Understanding IPO Private Placement:
To begin investing in IPO stocks, it's essential to understand what IPO investing entails. IPO investing involves purchasing shares of a company to be listed on stock exchanges, such as Bursa Malaysia. Companies usually sell a significant portion of their shares privately through an Initial Public Offering (IPO) before going public. Previously, this opportunity was limited to financial institutions and private equity firms. Now, you can also invest in these new shares.
Benefits of investing through IPO Private Placement:
Investing in IPO stocks offers several advantages. Here are some of the key benefits of IPO private placement:
Guaranteed Allocation of Shares: One of the key advantages of investing in a private placement is the certainty of receiving shares. In a public IPO, shares are often allocated through a balloting process, and there is no guarantee that all interested investors will receive an allocation. With private placements, however, investors are typically assured of the number of shares they will receive as per the agreement. This removes the uncertainty and potential disappointment associated with not getting shares in a public IPO due to oversubscription or random allocation processes.
This feature is particularly attractive when investing in highly sought-after companies where the public IPO is expected to be oversubscribed. In such scenarios, private placement investors have the advantage of bypassing the competitive and uncertain public process, securing their investment directly.
Direct Relationship with Management: Investors in private placements often have direct access to the company's management, allowing for a clearer understanding of the company's strategy, operations, and financials.
Access to Detailed Business Plans: Companies going for IPO often provide comprehensive business plans, offering more insight into their revenue, profit-after-tax ratio, and other financial metrics. This detailed information can be crucial for making informed investment decisions.
