KUALA LUMPUR (Nov 28): L&P Global Bhd (L&P), formerly known as Berjayapak International Holdings Sdn Bhd, has entered into an underwriting agreement with Alliance Islamic Bank Bhd (AIS) in conjunction with its upcoming initial public offering on the ACE Market of Bursa Malaysia Securities Bhd.

In a statement on Monday (Nov 28), the integrated industrial packaging solutions provider said its IPO exercise encompasses a public issuance of 113.0 million new shares, representing 20.18% of its enlarged share capital, as well as an offer for sale of 33.8 million existing shares, representing 6.04% of the enlarged shares by way of private placement to selected investors.

Out of the 113.0 million new shares, 24.0 million shares will be made available to the Malaysian public via balloting; 13.0 million shares for its pink form allocations; 6.0 million shares by way of private placement to selected investors; while the remaining portion of 70.0 million shares is reserved for approved Bumiputera investors, it said.

The company said AIS will underwrite a total of 37.0 million new shares made available to the Malaysian public and pink form allocations.

L&P and its subsidiaries designs and manufacture wooden-based industrial packaging products comprising boxes, crates and pallets.

With operations in Malaysia and Vietnam, the group’s industrial packaging solutions are used by multinational corporations in the renewable energy, electronics and semiconductor, food, automotive, and packaging industries.

L&P executive director-cum-chief executive officer Ooi Lay Pheng said with the funds raised from the IPO, the company can scale up operations and increase production output to meet the rising demand for industrial packaging products.

“Leveraging on our long-established working relationships with MNCs and quality products that meet international standards for global supply chain needs, we are in a strong position to benefit from the growth in manufacturing activities in Malaysia and Vietnam.

“Both countries have benefitted from the relocation and setting up of manufacturing facilities by MNCs outside of China due to the ongoing US-China trade war,” she said.

Ooi said wooden industrial packaging products will continue to be the preferred choice when transporting goods across the supply chain due to its higher strength, durability and lower up-front costs.

“Furthermore, it is environmentally friendly as it is biodegradable and can be recycled, repaired and reused more than once, thus extending its useful lifespan,” she said.

Meanwhile. AIS chief executive officer Rizal IL-Ehzan Fadil Azim said the bank is confident that L&P will continue to excel, as it strengthens its capabilities and capacities to provide industrial packaging solutions that are cost-effective and sustainable to MNCs across diverse sectors.

“The listing will serve as an effective platform for the Company, as they embark on their next chapter of growth,” he said.

L&P is scheduled to launch its prospectus in December 2022, and to be listed on the ACE Market of Bursa Securities by January 2023, with AIS as the principal adviser, sponsor, joint placement agent and sole underwriter.