SINGAPORE: Malaysian palm oil company Johor Plantations Group has filed a draft prospectus for a domestic initial public offering (IPO), which capital markets publication IFR said would be worth up to $180 million.

Johor Plantations, owned by Johor state government agency JCorp via its unit Kulim, plans to offer up to a 35% stake in the IPO, or as much as 875 million shares.

More than 90% of that will be sold to institutional and selected investors and the balance to retail investors, according to the preliminary prospectus filed with the Securities Commission Malaysia on Monday.

The draft prospectus did not provide the IPO price, its size or timeline, but IFR, without saying from where it obtained the information, said the IPO size was $150 million to $180 million with the launch targeted for the second half of 2024.

Johor Plantations did not immediately respond to an emailed request for comment.

Palm opens higher on support from rival oils

The company said in the draft prospectus it plans to use the IPO proceeds for capital expenditure, including the construction of a palm oil complex, and for replanting activities.

It also plans to use the proceeds for repayment of borrowings, working capital and listing expenses.

RHB Investment Bank is the principal adviser of the IPO.

The bank is also the joint global coordinator, joint bookrunner and joint underwriter with AmInvestment Bank, CIMB and CLSA, according to the draft prospectus. Affin Hwang Investment Bank is the joint bookrunner and underwriter.