Boustead Plantations IPO oversubscribed by six times

by **Cals** Tue 17 Jun 2014, 01:19

Business & Markets 2014

Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com

Monday, 16 June 2014 17:56

KUALA LUMPUR (June 16): Boustead Plantations Bhd (BPB) announced that the retail portion of its initial public offering (IPO) has been oversubscribed by six times, as it has received 30,787 applications for 448 million shares valued at RM717 million.

The final retail price and institutional price of its shares are fixed at RM1.60 per share.

The group’s institutional offering to other institutional and selected investors, excluding Bumiputera investors, was oversubscribed by 12.4 times comprising 102,374,000 IPO shares.

The bookbuilding period was closed earlier on June 9, 2014, due to the overwhelming response from institutional investors.

“We are heartened by the market’s sentiments towards our IPO by virtue of this oversubscription.

“We believe that this positive response is attributed to the fact that this IPO presents investors with an attractive opportunity to participate in the dynamic plantation sector which holds vast potential for growth,” said Tan Sri Datuk Sri Lodin Wok Kamaruddin, vice chairman of BPB.

BPB’s IPO consisted of 656.0 million shares, comprising 64.0 million shares for the Malaysian public and 381.4 million shares for shareholders and unitholders of Boustead Holdings Bhd (BHB) and Boustead REIT.

Meanwhile, 47.0 million shares were reserved for eligible directors and employees of BPB and BHB, while 163.6 million shares were offered to institutional investors.