BUSINESS

MKH GETS SHAREHOLDERS' NOD FOR PROPOSED MAIN MARKET LISTING OF SUBSIDIARY

28/11/2023 03:47 PM

KUALA LUMPUR, Nov 28 (Bernama) -- MKH Bhd has obtained approval from its shareholders for the proposed listing of its wholly-owned subsidiary, MKH Oil Palm (East Kalimantan) Bhd (MKHOP), on the Main Market of Bursa Malaysia.

MKH Group executive chairman Tan Sri Chen Kooi Chiew @ Cheng Ngi Chong said the upcoming listing of MKHOP marks a pivotal step in unlocking the full potential of its investment in the cultivation of oil palm firms and enhancing shareholders’ value at the group level.

“Additionally, access to the broader equity market will empower MKHOP with the necessary resources and flexibility to capitalise on the attractive opportunities within the expanding oil palm plantation industry in East Kalimantan,” he said in a statement today, in conjunction with MKH’s extraordinary general meeting today. 

Based on an indicative initial public offering (IPO) price of 60 sen per share, MKHOP is expected to raise RM132 million from the public issue, with 70.5 per cent of it being used for expanding the oil palm plantation business and optimising fresh fruit bunch harvesting and palm oil milling activities. 

From the offer for sale, MKH will raise RM18.4 million, which will be mainly utilised to repay bank borrowings.

“A portion of the proceeds from MKHOP’s IPO will be strategically allocated towards the acquisition of plantations or lands for plantation development within close proximity to its existing estates.

“The estates’ strategic positioning within a 100-kilometre radius of Nusantara, the new capital city of Indonesia, places MKHOP in an advantageous position to leverage on the future capital city’s growth,” he said. 

Therefore, the group is poised to benefit from the economic transformation of East Kalimantan, driven by the development of Nusantara, he added.

MKHOP’s proposed IPO comprises a public issue of 220 million new shares, representing 21.5 per cent of its enlarged share capital. 

Additionally, there is a proposed offer for the sale of 30.7 million existing shares by MKH’s wholly-owned subsidiary, Metro Kajang (Oversea) Sdn Bhd, representing three per cent of the enlarged share capital.

-- BERNAMA


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