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Tanah Makmur Bucks Mart Trend To Soar 52 Per Cent At Midday
It moved between RM1.60 and RM1.98 after opening at a premium of 35 sen above its initial public offering (IPO) price of RM1.25.
At noon break, the benchmark FTSE Bursa Malaysia KLCI was 2.71 points lower at 1,884.0.
Managing Director, Datuk Tengku Zubir Tengku Ubaidillah, said the company was happy with the opening price, as Tanah Makmur has a good track record and potential growth prospect.
"It appears that the market shares our view," he told reporters after the listing ceremony here today.
The oil palm plantations and property developer saw 59.8 million shares changing hands in the first session.
Tanah Makmur raised RM127.0 million from the listing which comprised RM65.2 million listing proceeds for the company and RM61.8 million for selling shareholders.
It planned to use RM28.5 million, or 44 per cent, from the total proceeds for estate development which involves replanting and new planting programmes.
The rest of RM5 million (eight per cent) will be used for expansion of palm oil mill, RM13 million (20 per cent) for infrastructure work of the Kota Sri Ahmad Shah township, RM13.1 million (20 per cent) for bank borrowings and RM5.6 million ( eight per cent) for listing expenses.
Tengku Zubir said Tanah Makmur was in the midst of negotiating with the Pahang state government to acquire two pieces of plantation land located at Kampung Bongsu and Ulu Lepar, respectively.
However, he declined to elaborate.
From the prospectus, Tanah Makmur has an aggregate of 17,969.06 hectares of plantation land in Pahang, comprising 11,633.87 ha owned by the company and 6,335.87 ha of the Lembaga Kemajuan Perusahaan Pertanian Negeri Pahang leased land.
Its estates produced about 232,605 metric tonnes of fresh fruit bunches (FFB) for the financial year ended Dec 31, 2013.
He said the company was keen to increase the total FFB production this year.
Tengku Zubir also said the Pahang-based company was eyeing to increase its oil mill capacity to process 30 to 45 tonnes FFB per hour from 30 tonnes currently.
He said the company also planned to obtain a roundtable on sustainable palm oil and Malaysian sustainable palm oil standard accreditation.
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