ACE Market-bound L&P Global Berhad’s IPO oversubscribed by 36.14 times
SUNGAI BAKAP: Integrated industrial packaging solutions provider L&P Global Bhd (“L&P”), formerly known as Berjayapak International Holdings Sdn Bhd, has garnered positive response for its initial public offering (“IPO”) exercise, which has been oversubscribed by 36.14 times ahead of its listing on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”).
L&P and its subsidiaries (“the Group”) are an integrated industrial packaging solutions provider with 38 years of experience in the industry. The Group is principally involved in the design and manufacturing of wooden industrial packaging products, including boxes, crates, and pallets. It also provides packing services, circular supply services and trading of related products and raw materials.
L&P’s listing entails a public issue of 113,000,000 new ordinary shares (“Shares”) at an issue price of RM0.30 per share, representing approximately 20.2% of its enlarged share capital, with expected IPO proceeds of RM33.9 million. In addition, there is also an offer for sale of 33,800,000 existing shares (“Offer Shares”), representing 6.0% of the enlarged shares by way of private placement to selected investors.
The Group has received a total of 11,740 applications for 891,331,400 Shares with a value of approximately RM267.40 million for the 24,000,000 Shares allocated to the Malaysian public, representing an oversubscription rate of 36.14 times.
The 13,000,000 Shares available for application by the eligible directors and employees, as well as persons who have contributed to the success of the Group have been fully subscribed.
Meanwhile, the private placement of 6,000,000 Shares and 33,800,000 Offer Shares available to selected investors have also been fully placed out.
In addition, 70,000,000 Shares made available by way of private placement to Bumiputera investors approved by the Ministry of International Trade and Industry, Malaysia (‘MITI”) have been fully subscribed.
Notices of allotment will be posted to all successful applicants on or before 3 Jan 2023.
Executive Director-cum-Chief Executive Officer of L&P, Miss Ooi Lay Pheng said, “We are very pleased with the positive response received for our IPO as it reflects the market’s confidence towards L&P’s business fundamentals and growth prospects. With the IPO funds in place, we are set to embark on our expansion plans and capitalise on the growth opportunities in the wooden industrial packaging industry.”
“In view of the escalating US-China trade tension that have resulted in MNCs 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 on 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,” Ooi added.
L&P is scheduled to be listed on the ACE Market of Bursa Securities on 3 January 2023. Upon listing, L&P will have a market capitalisation of RM168 million based on the issue price of RM0.30 per share and its enlarged share capital of 560,000,000 shares.
Alliance Islamic Bank Berhad as the Principal Adviser, Sponsor, and Sole Underwriter for the IPO exercise. Alliance Islamic Bank Berhad and Affin Hwang Investment Bank Berhad are the Joint Placement Agents.