KUALA LUMPUR (July 9): The Employees Provident Fund (EPF) has emerged as a substantial shareholder in palm oil producer Johor Plantations Group Bhd (KL:JPG) on Tuesday (July 9), the day the stock was listed on Bursa Malaysia’s Main Market.
EPF, through Citigroup Nominees (Tempatan) Sdn Bhd, bought 222.24 million shares, or an 8.896% stake in JPG, the group’s filing showed.
The transaction price was not disclosed in the filing.
Kulim (Malaysia) Sdn Bhd is currently JPG’s largest shareholder, holding a 65% stake. Kumpulan Wang Persaraan Diperbadankan, meanwhile, holds a 5.82% stake in the company.
On its maiden trading day on Tuesday, JPG shares ended at 90 sen, up 7.14% from its initial public offering (IPO) price of 84 sen. This gave the company a market capitalisation of RM2.25 billion, based on an enlarged share capital of 2.5 billion shares.
Among the five companies listed on the Main Market so far this year, JPG was the third-best performing stock on the first day of listing. Keyfield International Bhd (KL:KEYFIELD) surged 114% on its debut, making it the top performer, while Feytech Holdings Bhd (KL:FEYTECH) rose 37.5%.
Keyfield has an enlarged share capital of 800 million shares, while Feytech has 843.2 million shares.
For the first quarter ended March 31, 2024 (1QFY2024), JPG’s net profit more than doubled to RM49.97 million from RM23.4 million a year earlier, as revenue rose 16.8% to RM294.91 million from RM251.98 million previously, mainly due to increases in revenue from selling crude palm oil (CPO) and palm kernel.
On prospects, JPG said demand for CPO in the short term may be influenced by geopolitical events such as the Russia-Ukraine war, conflicts in the Middle East, and uncertainty in the US Federal Reserve’s interest rate policy. Meanwhile, global production of oilseeds such as soybeans is expected to be volatile amid adverse weather conditions.
Furthermore, global demand for vegetable oils is expected to persist as destination markets start to replenish their low stockpile reserves, the company commented on its 1QFY2024 results filed on Bursa Malaysia on July 2.
“Nevertheless, any sudden rise in geopolitical tensions could trigger a disruption in the global supply chain, consequently dampening the demand for vegetable oils. Despite the uncertainties in the external environment, the group will continue to focus on optimising its operational efficiency, especially on improving yield, mechanisation, plant efficiency and cost control,” JPG added.
JPG shares closed one sen or 1.12% lower at 88 sen on Friday, giving it a market capitalisation of RM2.2 billion.