KUALA LUMPUR (May 24): Sabah-based forest resource company Jawala Inc is seeking to raise S$4.5 million (RM13.3 million) via an initial public offering (IPO) on Singapore Exchange's Catalist Board to develop its plantation site and for working capital.
Jawala is offering 18 million shares at an issue price of S$0.25 (74 sen) each, which represents 15.2% of the group's post-IPO share capital of 118.47 million shares. The IPO comprises a public offer of 400,000 shares at S$0.25 each and a placement of 17.6 million placement shares at S$0.25 each.
Based on the issue price of S$0.25 per share, Jawala expects its post-IPO market capitalisation to be S$29.6 million (RM87.8 million).
The invitation opens today and will close at 12 noon on May 30. Jawala's shares will commence trading on June 1.
"Our IPO on the Catalist Board marks the beginning of a new chapter for Jawala as we pursue regional expansion, leveraging on the good reputation of the Singapore Exchange," its executive director and CEO Datuk Jema Khan said in a statement today.
Jawala manages a Class II Commercial Forest Reserve of 11,043ha in Sabah's Sapulut Forest Reserve until Dec 31, 2115, with potential for a 100-year period extension at the discretion of Sabah's chief minister. It is authorised by the Sabah government to process, convert and sell timber.
Jawala also has a plantation located within Sabah's Sapulut Forest Reserve, which it intends to develop in preparation for harvesting in 2026. It will implement a planting programme from 2018 to 2025, and continually source for seeds for potential tree species to plant.