ACE Market-bound L&P Global’s IPO oversubscribed by 36 times

L&P Global Bhd’s IPO exercise has been oversubscribed by 36.14 times ahead of its listing on the ACE Market of Bursa Malaysia Securities Bhd.

L&P Global’s listing entails a public issue of 113 million new shares at an issue price of 30 sen per share, representing approximately 20.2% of its enlarged share capital, with expected IPO proceeds of RM33.9 million.

In addition, there is also an offer for sale of 33.8 million existing shares (offer shares), representing 6% of the enlarged shares by way of private placement to selected investors.

“The group has received a total of 11,740 applications for 891,331,400 shares with a value of about RM267.4 million for the 24 million shares allocated to the Malaysian public, representing an oversubscription rate of 36.14 times,” it said in a statement today.

The 13 million shares available for application by the eligible directors and employees, as well as persons who have contributed to the success of the group have been fully subscribed, it said.

Meanwhile, the private placement of six million shares and 33.8 million offer shares available to selected investors have also been fully placed out.

In addition, 70 million shares made available by way of private placement to Bumiputera investors approved by the Ministry of International Trade and Industry (MITI) have been fully subscribed, it said.

Notices of allotment will be posted to all successful applicants on or before Jan 3, 2023.

L&P Global is principally involved in the design and manufacturing of wooden industrial packaging products.

“In view of the escalating US-China trade tension that have resulted in multinational corporations (MNCs) relocating their manufacturing facilities to the South-East Asia region, the listing comes at an opportune time as we are poised to expand and strengthen our market presence domestically and also regionally to Singapore,” ED cum CEO Ooi Lay Pheng said.

L&P Global is scheduled to be listed on the ACE Market of Bursa Securities on Jan 3, 2023. Upon listing, L&P Global will have a market capitalisation of RM168 million based on the issue price of 30 sen per share and its enlarged share capital of 560 million shares.

Alliance Islamic Bank Bhd is the principal adviser, sponsor and sole underwriter for the IPO exercise. It is also the joint placement agents together with Affin Hwang Investment Bank Bhd. — TMR / pic source: lpglobalbhd.com