KUALA LUMPUR (Dec 21): Integrated industrial packaging solutions provider L&P Global Bhd said its initial public offering (IPO) was oversubscribed by 36.14 times by the Malaysian public, ahead of its listing on Bursa Malaysia's ACE Market on Jan 3.

According to the group's statement on Wednesday (Dec 21), it received a total of 11,740 applications for 891.33 million shares of the 24 million shares made available to the Malaysian public.

The 13 million shares available for application by eligible directors and employees, as well as persons who have contributed to the success of the group, and another 70 million shares made available by way of private placement to Bumiputera investors approved by the Ministry of International Trade and Industry, were also fully subscribed to.

Meanwhile, the private placement of six million shares and 33.8 million offer shares available for selected investors were also fully placed out.

L&P Global is principally involved in the design and manufacturing 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.

Under its listing exercise, the group aims to raise RM33.9 million from its public issue of 113 million new shares at an issue price of 30 sen per share. Upon listing, it will have a market capitalisation of RM168 million.

L&P Global's executive director-cum-chief executive officer Ooi Lay Pheng said the listing comes at an opportune time as the group is poised to expand and strengthen its market presence domestically and also regionally to Singapore.

This is also in view of the escalating US-China trade tension that has resulted in multinational corporations relocating their manufacturing facilities to the Southeast Asian region, she said.

"Leveraging on our in-house manufacturing capabilities that meet international standards, we stand to benefit from the scaling up of our operations and production output to meet the rising demand for industrial packaging products," Ooi added.

Alliance Islamic Bank Bhd is the principal adviser, sponsor, and sole underwriter for the IPO exercise. Meanwhile, Alliance Islamic Bank and Affin Hwang Investment Bank Bhd are the joint placement agents.