Leong Hup to raise RM275m from IPO

Leong Hup International Bhd wants to raise up to RM275 million from its initial public offering (IPO). The retail price of the offer shares has been set at RM1.10 per share.

The poultry concern is on its route to a Main Market relisting on May 16 and intends to use some RM207 million of the proceeds for capital expenditure (capex) and RM33 millon for working capital, while the rest to defray fees and expenses for the listing services.

In an exchange filing yesterday, Leong Hup noted that the capex will facilitate the expected growth of its operations in Malaysia, Vietnam and the Philippines so as to increase its visibility and presence in these countries.

Some RM40.7 million of the capex will go to its Malaysian operations; RM47 million to its Vietnam operations; and RM120 million for the Philippines operations.

Leong Hup stated in the event the capex has been incurred before the receipt of the proceeds from the public issue, the IPO proceeds will be used to replenish any internally generated funds or repay bank borrowing drawn down for the purpose of the said capex. — TMR