JF Apex Research: "Over a medium to long term outlook, we are cautious on the FBM KLCI performance as it still treads below the 100- and 200-day moving averages at 1,650 and 1,700 points respectively."
KUALA LUMPUR: Plantation company Matang Bhd
has received Bursa Malaysia Securities' approval to list on the ACE Market, tentatively by first quarter of 2017.
The initial public offer (IPO) will involve the issuance of 130 million new shares of 10 sen each in Matang, or 7.18% of the enlarged issued and paid-up share capital.
Matang chairman Datuk Teh Kean Ming said the approval for the listing was a significant milestone in Matang’s journey to become a listed entity.
“The IPO will enable us to tap into the equity capital market to raise funds and to provide us the financial flexibility to pursue our future growth opportunities. We look forward to completing the exercise by first quarter 2017,” he added.
Funds raised from the IPO would be mainly used for general working capital to finance Matang and its subsidiaries day-to-day operations.
Part of the proceeds would be used for replanting as Matang seeks to improve the age profile of its oil palm trees, capital expenditure and to defray estimated listing expenses.
As at December 2015, about 32.8 hectares, or 3.0% of Matang's total oil palm plantation area has reached 21 years and above, which is past its peak production age.
As such, the Group targets to replant 16.4 hectares of the plantation area per year for 2016 and 2017.
M&A Securities Sdn Bhd is the adviser, sponsor and underwriter for the IPO exercise.
Matang was incorporated on April 28, 2015 as a special purpose vehicle to enable the listing of Matang.
Matang's core activities are the management of plantation estate, sale of fresh fruit bunches and property investment holding.
Its Matang estate comprises 45 contiguous pieces of agricultural lands in Ledang and Segamat and covers 1,096.3 hectares.
