Leong Hup sets IPO price at RM1.10 per share

PETALING JAYA: Poultry player Leong Hup International Bhd has set the maximum price for its upcoming initial public offering (IPO) at RM1.10 per share, according to Bloomberg.

The newswire noted that at that price, the exercise could raise about US$250mil (RM1.03bil), which would make Leong Hup’s IPO the largest since Lotte Chemical Titan Holding Bhd’s listing in July 2017.

Leong Hup would be launching its prospectus this Thursday.

Agricultural goods processor and merchant Louis Dreyfus Company and billionaire Tan Sri Quek Leng Chan are reportedly cornerstone investors for the IPO, according to Bloomberg.

This is in addition to the Employees Provident Fund, the AIA Group, Maybank Asset Management, RHB Asset Management, as well as prominent investor Chua Ma Yu.

Leong Hup is also mulling to set aside an estimated 40% of its base offering for cornerstone investors.

The group is majority-owned by the founding Lau family and is backed by private equity firm Affinity Equity Partners.

Leong Hup, which is involved in livestock feed manufacturing, egg production and poultry farming, will be the most closely watched IPO this year, as the listing of QSR Brands (M) Holdings Bhd has been shelved.

Potential investors found QSR Brand’s forward earnings multiple of some 25 times steep, and sluggish markets impacted the offering.

QSR Brands is the operator of the KFC and Pizza Hut chain of restaurants in Malaysia.

It was supposed to have raised as much as US$500mil (RM2.07bil).

Source : TheStar