KUALA LUMPUR: Johor Plantations Group Bhd (JPG) began trading at 84 sen per share on its first day on the Main Market of Bursa Malaysia, with a total of 57.19 million shares changing hands.
At 11 am, the price increased to 92 sen, representing a 9.52 per cent change from its opening price, with 109 million shares traded, the market capitalisation reached RM2.3 billion.
JPG raised around RM735.0 million, with RM389.8 million coming from the public issue of 464.0 million new ordinary shares, and RM345.2 million from the sale of 411.0 million existing ordinary shares.
From the public issue proceeds, approximately RM196.8 million will be allocated to build an integrated sustainable palm oil complex, which supports the company's move into the downstream segment of the plantation value chain, as well as for replanting activities to ensure the long-term sustainability of its plantations.
Additionally, around RM167.4 million and RM6.7 million are designated for repaying bank loans and working capital, respectively.
JPG said the remaining funds will cover the estimated listing expenses.
"In our context, it's always about building value. What we have done so far is differentiate our oil through certification and quality.This approach has driven demand for our product, not only due to its high quality but also its certifications," JPG managing director Mohd Faris Adly Shukery said at the press conference.
On Plantations and Commodities Minister Datuk Seri Johari Abdul Ghani's recent comments to review the windfall profit levy on palm oil prices, JPG chairman Tan Sri Datuk Seri Dr. Ismail Bakar said such a move will have an impact on all companies given that the levy is applied to the overall profits of the company.
"It depends on how high the government sets the levy rate. If the government imposes a levy, it will affect all companies within the same industry," he added.
Johari mentioned that his ministry will assess and review the WPL before submitting the findings to the Ministry of Finance (MOF) for further action.