MARKET DEVELOPMENT
Boustead Plantations IPO Plan
Boustead Plantations IPO Plan
07/04/2014 (New Straits Times) - Boustead Plantations Bhd, which plans to debut on the local stock market by the middle of this year, is said to be selling up to 41 per cent of its shares.
“Ten per cent is for institutional investors and 31 per cent for retail subscription. This is the first time in recent years that such a big portion of a debutant’s shares is being offered to retail investors,” a source told Business Times yesterday.
In July last year, Boustead Plantations’ parent, Boustead Holdings Bhd, paid RM2.30 a share for the 46.6 per cent it did not own in Al-Hadharah Boustead REIT. After the corporate move, Boustead Plantations now controls 71,092.7ha of oil palm estates and 10 mills across Malaysia.
So far, Boustead Plantations’ initial public offering (IPO) is the only palm oil-linked listing slated for the year.
As crude palm oil continues to trade at buoyant prices of between RM2,600 and RM2,700 per tonne, investors see good returns from pure plantation counters, such as Boustead Plantations.
Boustead Plantations’ IPO comprises 580 new million shares and 76 million existing shares under the offer for sale from Boustead Holdings.
Existing Boustead Holdings shareholders and previous unitholders of Al-Hadharah Boustead REIT will be allocated IPO shares and need not go through the balloting process.
This restricted offer is fixed at three Boustead Plantations shares for every five Al-Hadharah Boustead REIT shares and one Boustead Plantations share for every five Boustead Holdings
shares.
After the listing, Boustead Holdings is set to keep a 59 per cent controlling stake in Boustead Plantations, which is committed to a 60 per cent dividend payout of its profit.
Last Friday, Boustead Holdings shares closed unchanged at RM5.39.
“Ten per cent is for institutional investors and 31 per cent for retail subscription. This is the first time in recent years that such a big portion of a debutant’s shares is being offered to retail investors,” a source told Business Times yesterday.
In July last year, Boustead Plantations’ parent, Boustead Holdings Bhd, paid RM2.30 a share for the 46.6 per cent it did not own in Al-Hadharah Boustead REIT. After the corporate move, Boustead Plantations now controls 71,092.7ha of oil palm estates and 10 mills across Malaysia.
So far, Boustead Plantations’ initial public offering (IPO) is the only palm oil-linked listing slated for the year.
As crude palm oil continues to trade at buoyant prices of between RM2,600 and RM2,700 per tonne, investors see good returns from pure plantation counters, such as Boustead Plantations.
Boustead Plantations’ IPO comprises 580 new million shares and 76 million existing shares under the offer for sale from Boustead Holdings.
Existing Boustead Holdings shareholders and previous unitholders of Al-Hadharah Boustead REIT will be allocated IPO shares and need not go through the balloting process.
This restricted offer is fixed at three Boustead Plantations shares for every five Al-Hadharah Boustead REIT shares and one Boustead Plantations share for every five Boustead Holdings
shares.
After the listing, Boustead Holdings is set to keep a 59 per cent controlling stake in Boustead Plantations, which is committed to a 60 per cent dividend payout of its profit.
Last Friday, Boustead Holdings shares closed unchanged at RM5.39.