IPO - Leong Hup International Berhad (LHI)

Listing Detail:
Listing Sought: MAIN Market
Issue Price: RM1.10

Dates:
Offer Period Open: 25 Apr 2019
Offer Period Close: 03 May 2019
Tentative listing date: 16 May 2019
Number of shares:
Public Issue: 250,000,000
Offer for Sale: 687,500,000

Stock Code: LHI

Official Announcement

INITIAL PUBLIC OFFERING ("IPO") OF UP TO 937,500,000 ORDINARY SHARES IN LEONG HUP INTERNATIONAL BERHAD ("LHI") ("LHI SHARES") ("IPO SHARES") IN CONJUNCTION WITH THE LISTING OF AND QUOTATION FOR THE ENTIRE 3,650,000,000 LHI SHARES ON THE MAIN MARKET OF BURSA MALAYSIA SECURITIES BERHAD COMPRISING AN OFFER FOR SALE OF UP TO 687,500,000 EXISTING LHI SHARES ("OFFER SHARES") AND A PUBLIC ISSUE OF 250,000,000 NEW SHARES ("ISSUE SHARES") INVOLVING:

I. INSTITUTIONAL OFFERING OF UP TO 839,500,000 IPO SHARES TO MALAYSIAN AND FOREIGN INSTITUTIONAL AND SELECTED INVESTORS, INCLUDING BUMIPUTERA INVESTORS APPROVED BY THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY AT THE INSTITUTIONAL PRICE TO BE DETERMINED BY WAY OF BOOKBUILDING ("INSTITUTIONAL PRICE"); AND

II. RETAIL OFFERING OF 98,000,000 ISSUE SHARES TO THE DIRECTORS OF LHI, ELIGIBLE EMPLOYEES OF LHI AND ITS SUBSIDIARIES ("LHI GROUP"), PERSONS WHO HAVE CONTRIBUTED TO THE SUCCESS OF THE LHI GROUP AND THE MALAYSIAN PUBLIC,

AT THE RETAIL PRICE OF RM1.10 PER IPO SHARE ("RETAIL PRICE"), PAYABLE IN FULL UPON APPLICATION AND SUBJECT TO REFUND OF THE DIFFERENCE BETWEEN THE RETAIL PRICE AND THE FINAL RETAIL PRICE (AS DEFINED HEREIN THIS PROSPECTUS) IN THE EVENT THAT THE FINAL RETAIL PRICE IS LESS THAN THE RETAIL PRICE, SUBJECT TO THE CLAWBACK AND REALLOCATION PROVISIONS AND THE OVER-ALLOTMENT OPTION (AS DEFINED HEREIN THIS PROSPECTUS). THE FINAL RETAIL PRICE WILL BE EQUAL TO THE LOWER OF: (I) THE RETAIL PRICE OF RM1.10 PER IPO SHARE; OR (II) THE INSTITUTIONAL PRICE

Company Overview

Leong Hup International is one of the largest fully integrated producers of poultry, eggs and livestock feed in Southeast Asia. Founded and headquartered in Malaysia, the company has presence in 5 countries: Malaysia, Singapore, Indonesia, Vietnam and Philippines.

Address & Contact:
3rd Floor, Wisma Westcourt,
126, Jalan Klang Lama,
58000 Kuala Lumpur, Malaysia

Tel: +603-7980 8086 / +603-7980 3817
Email: info@lhhb.com
Website: https://www.leonghupinternational.com/

Share Capital

• Market Cap: RM 4.015 bil (published prospecture book wrote 1.5bil is typo)
• Shares Issue to sell: 937.5 mil shares (IPO 98 mil, private placement 839.5 mil)
• Enlarged Issued Shares: 25.68%
   

Business by Country

• Malaysia: 28.8%
• Indonesia: 31.7%
• Singapore: 19.8%
• Vietnam: 19.20%
• Philippines: 0.5%

Past Financial Proformance (Revenue, EPS)

• FPE 2018: RM4.690 bil (10mths eps: 0.0513)
• 2017: RM5.501 bil (eps: 0.0566)
• 2016: RM5.257 bil (eps: 0.0537)
• 2015: RM4.714 bil (eps: 0.0323)

Net Profit Margin

• FPE 2018: 4.7% (10 mths)
• 2017: 4.5%
• 2016: 5.1%
• 2015: 3.5%

Use of fund

• Capital Expenditure: 75.5%
• Working Capital: 12.0%
• Lisitng Expenses: 12.5%

News: Leong Hup International to raise RM275m via IPO

KUALA LUMPUR: Leong Hup International Bhd, which is making a return to Bursa Malaysia after a seven-year hiatus, aims to raise total gross proceeds of RM275 million via its initial public offering (IPO).

Executive director/chief executive officer Tan Sri Francis Lau Tuang Nguang said 75.5 per cent of the proceeds would be utilised mainly for capital expenditure to facilitate the expected growth of the company’s operations in Malaysia, Vietnam and the Philippines.

About 12 per cent of the gross proceeds will be utilised for working capital while the remaining proceeds will be allocated to defray fees and expenses for the IPO and listing.

“Going forward, we will remain focused on implementing our business development strategies to ensure business continuity and growth.

“To begin with, we will further increase our visibility and presence in Malaysia, Vietnam and the Philippines,” he told reporters after the launch of the company’s prospectus here today.

Leong Hup is principally involved in the production of poultry, egg and livestock feed across the poultry value chain in Southeast Asia.

In 2017, the company is the largest integrated poultry producer in Malaysia and one of the top three poultry producers in Indonesia and Vietnam, with a total production of 495.6 million day-old chicks, 1.7 billion eggs and almost 2.0 million tonnes of feed.

“In the near future, the company intends to consolidate and expand our leadership position in Malaysia and Singapore by driving efficiencies and continually improving our processes and adding capacity where possible.

“We will also continue to increase the use of our own broiler farms in Malaysia, in order to control quality and increase efficiency. We intend to replicate this approach in Indonesia and Vietnam too,” said Lau.

He added that the company planned to penetrate Cambodia in the near future.

With the listing of Leong Hup on Bursa Malaysia on May 16, it will be one of the biggest IPOs in Malaysia since 2017.

The company has received 10 cornerstone investors including the Employees Provident Fund, Maybank Asset Management Sdn Bhd and Louis Dreyfus Company Asia Pte Ltd.

Closing for the retail and institutional offerings will be on May 3, 2019 .

– BERNAMA