IPO Malaysia

IPO - Matang Berhad (MATANG)

kltrader
Publish date: Tue, 27 Dec 2016, 12:19 PM
kltrader
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My collection of new IPOs in Malaysia and the background of companies going for IPO.

Listing Detail:
Listing Sought: Ace Market
Issue Price: RM0.13
Par Value: RM 0.10

Dates:
Offer Period Open: 19 Dec 2016
Offer Period Close: 03 Jan 2017
Tentative listing date: 17 Jan 2017

Number of shares:
Public Issue: 130,000,000
Offer for Sale: -
Private Placement: -

Stock Code: MATANG

Official Announcement

INITIAL PUBLIC OFFERING IN CONJUNCTION WITH OUR LISTING ON THE ACE MARKET OF BURSA MALAYSIA SECURITIES BERHAD COMPRISING PUBLIC ISSUE OF 130,000,000 NEW ORDINARY SHARES OF RM0.10 EACH IN OUR COMPANY FOR APPLICATION BY THE MALAYSIAN PUBLIC AT AN ISSUE PRICE OF RM0.13 PER SHARE, PAYABLE IN FULL UPON APPLICATION.

Company Overview

Matang Berhad is an investment holding company operating through its subsidiary that develops real estate properties. Matang Berhad was incorporated in 1978 and is based in Johor Bahru, Malaysia. Through its subsidiary, Matang Holdings Berhad, the company  engages in the management of oil palms plantation estate, sale of fresh fruit bunches, and property investment holding activities. Its total plantation area comprise of 1,082.1 hectares of plantation estate land located in Johor.
 
Address & Contact:

Suite 905, Level 9, City Plaza
21, Jalan Tebrau, Johor Bahru, 80300 Johor, Malaysia

Phone: +607 276 3933
Fax: +607 276 3533
Website: http://matangholdings.com.my/

 

News: Matang to raise RM16.9m from IPO, offers shares at 13 sen each

KUALA LUMPUR: Plantation company Matang Bhd expects to raise RM16.90mil from its listing on the ACE Market of Bursa Malaysia Securities Bhd.

Under the listing exercise, Matang is issuing 130 million new shares of 10 sen each made available to the Malaysian public at the offer price of 13 sen per share.

Based on the enlarged issued and paid-up share capital of 1.81 billion shares and the IPO price or 13 sen per share, its market capitalisation would be about RM235.30mil upon listing. Matang’s listing is tentatively scheduled for Jan 17, 2017.

Speaking at the launch of the prospectus on Monday morning, Matang chairman Datuk Teh Kean Ming said he is optimistic about the company’s prospects due to the positive outlook for the plantation industry.

“Matang expects to see some of its oil palms which were replanted over the past a few years ago to start yielding optimal level of FFB production in the near future.

“Coupled with the current crude palm oil (CPO) at over RM2,900 per tonne and industry expectations of the average CPO price of above RM2,700 next year, the board believes there is potential for growth prospects for Matang,” he added.

Of the RM16.90mil to be raised from the listing exercise, RM11.92mil or 70.5% would be used mainly for general working capital to finance Matang and its subsidiaries’ day-to-day operations over the next five years.

Also RM2.55mil or 15.1% would be used for capital expenditure to boost its operations of Matang estate, RM250,000 (1.5%) for replanting  to improve the oil palm trees age profile and the remaining RM2.18mil (12.9%) would be to defray the listing expenses for the IPO.

Teh said out of the proceeds of RM11.92mil for day-to-day operational expenses, about RM9mil would be used over the next five years for purchase of fertilisers to ensure Matang’s oil palms yield an optimal level of fresh fruit bunches (FFB).

He added the replanting expenditure for Matang over the next two years would cover the purchase of the high quality “Felda Yangambi” line of germinated seeds, purchase of topsoil for the palm seedlings, land clearing expenses and costs associated with the preparation of the palm groves where the seedlings are to be planted.

Matang uses the “Felda Yangambi” line of germinated seeds as it has historically generated higher FFB yield and is also preferred by palm oil mills for the ability to produce FFBs with higher oil extraction rate.

Teh also said the palm oil industry and its plantation segment have the full support of the Malaysian Government, which has singled out palm oil as one of the main sectors to help Malaysia achieve developed nation status by 2020.  

Matang’s oil palm trees are generally replanted when they are above 24 years old and are low yielding and for that, Matang has targeted to replant 16.4 hectares of its plantation area in 2017 as it seeks to improve the age profile of its oil palm trees.

It will take about four years before its replanted oil palm trees mature and start producing FFBs.

This reflects the group’s commitment to maintaining a low average age profile of its oil palms to ensure majority of the oil palms are within peak production ages of between five and 20 years.

As at 30 June 2016, only 16.4 hectares, or about 1.5% of Matang’s total oil palm plantation area, is with oil palm trees which had reached 21 years and above, i.e., past its peak production age and thus producing less FFB.

M&A Securities Sdn Bhd is the adviser, sponsor and underwriter for the IPO exercise.

-- TheStar Online
 

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Discussions
Be the first to like this. Showing 15 of 15 comments

beso

ace market again,better don't touch

2016-12-27 13:19

Fam Jenny

It has large aceage of oil palm estate near the town in Tangkak,Johore.

2016-12-27 13:33

Super_SKL

Issue Price: RM0.13
Par Value: RM 0.10

3 cents pun mau tipu! Tapi pun ada orang "rela ditipu".

2016-12-27 15:23

詹植芝

buy and sell in the first week lo...earn fast $$...saya rela kena tipu..

2016-12-30 22:04

chong932

Most likely, opening price below IPO price or small premium. High risk low return. IPO may under subscribe too. Must avoid !

2016-12-31 23:12

speakup

MCA counter.....AVOID!
Matang will be just like FGV (umno counter)

2016-12-31 23:17

TY828

MCA got advantage to convert land to commmercial use?

2017-01-03 14:58

Pedestrian

Aiya, I already applied only see this topics, now I hope not allotted to avoid on board the pirate ship...

2017-01-03 20:37

詹植芝

so if DAP counter then should buy a lot la...don't everything also related to politic la...Malaysian Chinese

2017-01-06 13:52

ampabella

dont care what mau is this, pak mau, hei mau or Hong mau, A mau that can tangkap the big tikus is a good mau

2017-01-07 15:51

racingkit

above mostly negative feedback , but Matang still over subscribed 4-5 times ipo , boleh ? may be CPO at peak now ? usd$600 ( nearly ) , but fgv with huge asset for CPO , unexpected price....

2017-01-08 18:15

cheated

EPS 0.04 sen latest QR. Annualised EPS 0.16 sen. If fair PE 10 TP 1.6 sen?
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5313981

2017-01-13 18:55

write2sam4

esok huattttt ahhh

2017-01-16 15:04

詹植芝

i already huat huat lo...buy 0.13 sell 0.150..got $$ for this CNY..good ..those like to talk cock, talk $$ wont come into your pocket..work it out !

2017-01-17 16:21

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