L&P Global Bhd (L&P), formerly known as Berjayapak International Holdings Sdn Bhd, has launched its prospectus and expects to be listed on the ACE Market of Bursa Securities by January 2023, with AIS as the principal adviser, sponsor, joint placement agent and sole underwriter. It aims to raise RM33.9 million from its initial public offering (IPO).
The company plans to use RM10 million of the proceeds for capital expenditure, mainly for the construction of a new factory in Johor, and RM2 million for business expansion. Another RM13 million for working capital to buy raw materials to support its operations, RM5 million to repay borrowings, and the balance RM3.9 million to defray listing expenses.
The group is principally involved in the design and manufacture of wooden industrial packaging products, including boxes, crates, and pallets. It also provides packing services, circular supply services, and trading of related products and raw materials.
Executive director and chief executive officer Ooi Lay Pheng said L&P Global aims to strengthen its presence in the northern region of Peninsular Malaysia.
“We will relocate part of assembly activities from Sungai Bakap to Perai, Penang in the second quarter of 2Q23), and Kulim, Kedah in 3Q2023. We will also install new assembly lines in the Perai and Kulim branches, which will allow us to expand manufacturing capacity in the Sungai Bakap factory with the freed-up manufacturing space there,” she told a press conference in conjunction with L&P Global’s IPO prospectus launch on 13 December.
L&P Global is also a past winner of the SME100 Fast Moving Companies and the Golden Bull Awards organised by Business Media International, the publisher of SME.
In addition, Ooi said, L&P Global intends to strengthen its presence in the southern region by installing new assembly lines at the Kulai branch in Johor in 1Q23, and building a new factory in Kulai/Senai, Johor in 1Q26.
L&P Global also seeks to expand its local geographical presence to the Klang Valley, as well as in the region to Singapore, after having a strong presence in Vietnam. This includes setting up a new assembly plant with storage space in the Klang Valley in 2Q23, as well as a factory in Singapore in 3Q23.
Ooi said the industry’s prospects are positive as the ongoing US-China trade war is expected to drive multinational companies to relocate and set up new manufacturing facilities in Malaysia and Vietnam, which will be beneficial to the company.
L&P Global’s IPO comprises a public issue of 113 million new shares, and an offer for sale of 33.8 million existing shares. At an issue price of 30 sen per share and an enlarged share capital of 560 million shares, the company will have a market capitalisation of RM168 million upon listing.
Applications for the public issue opened on Tuesday, and will close on 19 December.
Before the launching, L&P Global had earlier entered into an underwriting agreement with Alliance Islamic Bank Bhd (AIS) in conjunction with its initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd.
Out of the 113 million new shares, 24 million shares will be made available to the Malaysian public via balloting; 13 million shares for its pink form allocations; 6 million shares by way of private placement to selected investors; while the remaining portion of 70 million shares is reserved for approved Bumiputera investors.
