KUALA LUMPUR: Johor Plantations Group Bhd (JPG), an upstream oil palm plantation company with plans to expand into the downstream plantation business, made its debut on the Main Market of Bursa Malaysia today.

Its share price opened at 84 sen, unchanged from its initial public offering (IPO) price, with an opening volume of 5.7 million shares, representing a market capitalisation of RM2.1 billion.

The stock closed at 90 sen, up 6 sen or 7.14% with 178.24 million shares traded.

The palm oil producer raised RM735 million in the nation’s largest IPO since 2022. About RM389.8 million was generated through the public issuance of 464 million new ordinary shares, while around RM345.2 million was raised via the sale of 411 million existing ordinary shares.

Of the total proceeds raised from the public issue, about RM196.8 million will be used to construct an integrated sustainable palm oil complex as part of JPG’s strategy to venture into the downstream segment of the plantation value chain along with strategic replanting activities to ensure the long-term sustainability of its plantations, while approximately RM167.4 million and RM6.7 million have been earmarked for the repayment of bank borrowings and working capital respectively.

JPG chairman Tan Sri Ismail Bakar said the vision for JPG is to become an integrated player in the palm oil industry, producing speciality oils and fats with a global market reach.

“This entails JPG’s strategic venture into the downstream segment, the commitment to advancing the circular economy and ensuring the long-term viability and sustainability of JPG,” he said at JPG’s listing.

“With the rising global demand for vegetable oils and the industry’s shift towards sustainably sourced crude palm oil, JPG is well-positioned to meet the increasing demand for sustainably produced speciality oils and fats, aiming to grow the company’s market share,” he added.

JPG managing director Mohd Faris Adli Shukery said that the listing on the Main Market marks a pivotal moment for JPG, where it signifies not just a milestone achievement, but a strategic leap forward as the company moves towards becoming an integrated player within the plantation industry.

“With a keen focus on speciality oils and fats, this strategic move aims to unlock a wealth of growth opportunities and empower JPG to deliver expanded product offerings. As JPG embarks on this exhilarating journey, the company’s commitment towards our valued stakeholders remains paramount and will continue striving to bring JPG to even greater heights to deliver continuous value accretion,” he said.

In a press conference, Mohd Faris stated that JPG expects its new venture into the downstream segment to contribute 20% of the company’s revenue by 2027.

“The company is transitioning into downstream processing by refining speciality oils and fats for food production. JPG will shift its focus from commodity-based products to consumer products such as cocoa butter,” he announced at the press conference.