KUALA LUMPUR: Boustead Plantations Bhd, a wholly-owned subsidiary of Boustead Holdings Bhd, intends to list its shares on the Main Market of Bursa Malaysia Securities.

In a statement today, Boustead Holdings said upon listing, the enlarged issued and paid-up capital of Boustead Plantations will be 1.6 billion shares of 50 sen each.

"Upon the completion of the privatisation of Al-Hadharah Boustead REIT (Boustead REIT) by Boustead Plantations, the latter will own, co-own or lease a total of 40 oil palm plantation estates in Malaysia, and own and operate 10 palm oil mills.

"As part of the initial public offering (IPO), unitholders of Boustead REIT and shareholders of Boustead Holdings will benefit from this corporate exercise whereby they will be allocated IPO shares for application," it said.

Boustead Holdings Deputy Chairman and Group Managing Director Tan Sri Lodin Wok Kamaruddin said the listing of Boustead Plantations will expand the Group's prospects in the plantation sector.

The proposed IPO consists of up to 656 million ordinary shares in Boustead Plantations, comprising a proposed offer for sale of up to 76 million existing shares by Boustead Holdings and a public issue of 580 million new shares to retail and institutional investors.

"The retail offering consists of up to 492.43 million shares, out of which 206.83 million shares will be reserved for entitled shareholders of Boustead Holdings on the basis of one Boustead Plantations share for every five Boustead Holdings shares held.

"Some 174.59 million shares in Boustead Plantations will be reserved for entitled unitholders of Boustead REIT on the basis of three Boustead Plantations shares for every five Boustead REIT units held," it said.

Under the retail offering, 47 million shares will be set aside for eligible directors and employees of Boustead Plantations Group, Boustead Holdings as well as persons who have contributed to the success of the Boustead Plantations Group.

Some 64 million shares will be made available for application by the Malaysian public via balloting.

Under the institutional offering, some 163.57 million shares will be offered to Bumiputera investors approved by the Ministry of International Trade and Industry as well as other Malaysian institutions and selected investors. -- Bernama