L&P Global IPO exercise oversubscribed 36.14 times

KUALA LUMPUR: ACE Market-bound L&P Global Bhd's initial public offering (IPO) exercise has been oversubscribed by 36.14 times, ahead of its scheduled listing on Jan 3, 2023.

The integrated industrial packaging solutions provider, formerly known as Berjayapak International Holdings Sdn Bhd, said it received a total of 11,740 applications for 891.33 million shares with a value of about RM267.4mil for the 24 million shares allocated to the Malaysian public.

"Notices of allotment will be posted to all successful applicants on or before 3 Jan 2023," it said in a statement.

L&P's listing entails a public issue of 113 million new shares at an issue price of 30 sen per share, representing 20.2% of its enlarged share capital, for expected IPO proceeds of RM33.9mil

The company also made an offer for sale of 33.8 million existing shares, representing 6% of the enlarged shares by way of private placement to selected investors.

Executive director-cum-CEO Ooi Lay Pheng said it is pleased with the positive response received for the IPO and is set to embark on expansion plans and capitalise on 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,” she added.

Upon listing, L&P will have a market capitalisation of RM168mil based on the issue price of 30 sen per share and its enlarged share capital of 560 million shares.