KUALA LUMPUR: Matang Bhd made its debut on the Ace Market of Bursa Malaysia yesterday at 14 sen, a one sen premium above its issue price of 13 sen each.
The investment holding company with subsidiaries involved in the management of plantation estates and sale of fresh fruit bunches (FFB), had an oversubscription rate of 4.21 times during balloting.
A total of 36.16 million shares changed hands at the opening bell.
“We are happy with our opening price of 14 sen from the initial 13 sen. This shows market confidence in our company,” chairman, Datuk Teh Kean Ming told a press conference after the listing ceremony.
He said through the listing exercise, Matang aims to raise RM16.9 million, of which RM9 million will be utilised for the purchase of fertilisers for the company’s estates within the districts of Ledang and Segamat in Johor for the next five years.
As part of the company’s sustainable business, it plans to replant 16.4 hectares of its plantation area to improve the age profile and FFB yield.
Teh said over the next two years, Matang will purchase the high quality “Felda Yangambi” line of germinated seeds for the replanting exercise.
“The Felda Yangambi seeds are superior due to historically higher FFB yields.
“It is also more preferred by palm oil mills due to higher oil extraction rate,” he added.
Currently, Matang is producing a yield amount of 24 metric tonnes per hectare of FFB.
The company will also focus on improving operational efficiency by upgrading road infrastructure and the water drainage system at its estates.
“These measures will make our estates more efficient and in return, reduce costs and boost the company’s revenue and probability,” Teh said.
Matang’s plantation operation, comprises 45 contiguous pieces of agricultural land covering a total land area of 1,096 hectares.
On the outlook for 2017, Teh expects the performance of the industry to remain robust, attributable to the favorable crude palm oil (CPO) price levels currently trading at above RM3,000 per metric tonne. — Bernama