Home > Uncategorized > Nod for Boustead Plantations IPO

Nod for Boustead Plantations IPO

KUALA LUMPUR: BOUSTEAD Holdings Bhd (BHB) shareholders and previous unitholders of Al-Hadharah Boustead REIT can soon apply for the Boustead Plantations Bhd’s (BPB) restricted offer, without balloting.

BHB said yesterday the Securities Commission had approved of BPB’s initial public offering (IPO) which is slated for listing in the second quarter of this year.

About 28 per cent of BPB, or 163.6 million shares, will be allocated to institutional investors and the rest for retail investors.

The retail tranche consists of 492.4 million shares, of which 42 per cent will be allocated to BHB shareholders and 35 per cent to previous Boustead REIT investors.

Basically, the restricted offer is fixed at three BPB shares for every five Boustead REIT shares and one BPB share for every five BHB shares.

BHB said those who apply for at least 100 shares will be guaranteed an allocation of 100 shares. 

Any remaining shares will be allocated to entitled BHB shareholders who apply in excess of 100 shares, on a pro-rata basis according to their respective shareholdings in BHB as per the entitlement date to be announced later.

“BPB’s listing will allow us to unlock the value of our investments. Existing BHP shareholders and potential new shareholders will have the opportunity to take part in our good track record of delivering sustained earnings,” said BHB deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin.

Upon listing, BPB’s total enlarged and paid-up share capital will comprise 1.6 billion shares amounting to RM800 million. BPB is selling up to 656 million shares of its enlarged 1.6 billion share base, comprising 580 new million shares and 76 million existing shares offered by its parent.

Lodin said parent BHB will keep a controlling 59 per cent stake in BPB, which has committed a dividend payout of at least 60 per cent of its profit.

So far, BPB’s IPO is the only palm oil-linked listing slated for the year. As palm oil prices are on the uptrend, keen investor interests are expected on pure plantation counters such as BPB.

In terms of tree age profile, BPB’s mature and maturing trees, which are between four and 20 years old, make up 77 per cent of its planted area. Immature oil palms of between zero and three years make up nine per cent of its planted area and the balance 13.8 per cent are trees that are past their prime.

To stem any decline in its fresh fruit bunch output, Lodin said in five years, BPB will seek to grow its 71,092.7ha planted area by another 20,000ha.

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