PETALING JAYA: Leong Hup International Bhd is targeting to raise RM275 million from its relisting on the Main Market of Bursa Malaysia.
The poultry player was delisted in April 2012.
According to Leong Hup’s prospectus, its initial public offering (IPO) entails an issuance of up to 937.5 million shares comprising an offer for sale of up to 687.5 million existing shares and a public issue of 250 million new shares.
There will be institutional offering of up to 839.5 million shares to Malaysian and foreign institutional and selected investors, including Bumiputera investors; as well as retail offering of 98 million shares to the company directors, eligible employees and the Malaysian public at the retail price of RM1.10 per share.
Through its public issue, the group aims to raise total gross proceeds of RM275 million, of which about 75.5% of proceeds (equivalent to about RM207.7 million) will be utilised for capital expenditure and 12% for working capital.
It has secured 10 cornerstone investors for its IPO, including AIA Bhd, Employee Provident Fund Board (EPF), Maybank Asset Management Sdn Bhd, RHB Asset Management Sdn Bhd, Hong Leong Capital Bhd and agricultural goods processor and merchant Louis Dreyfus Company Asia Pte Ltd.
Other cornerstone investors include Tan Sri Chua Ma Yu and GuoLine (Singapore) Pte Ltd.
Leong Hup is slated for listing on May 16. Established in 1978, it is involved in the production of poultry, egg and livestock feed across the entire poultry value chain in Southeast Asia such as Malaysia, Singapore, Indonesia, Vietnam and the Philippines.
In 2017, it was the largest integrated poultry producer in Malaysia and one of the top three integrated poultry producers in Indonesia and Vietnam, with a total production of 495.6 million day-old-chicks, 1.7 billion eggs and almost 2 million tonnes of feed.
The group’s net profit rose 10.5% to RM219.8 million for the financial period ended October 31, 2018 from RM198.9 million in the same period a year ago.
Its revenue also grew 2.2% to RM4.7 billion from RM4.6 billion.
