Malaysia-based sustainable forest resource company Jawala Inc and its subsidiary has launched its initial public offering on the Singapore Exchange Securities Trading Limited, aiming to raise $4.5 million ($3.36 million).
According to a media release, the gross proceeds will be used to develop Jawala’s plantation site and for working capital. Headquartered in Sabah, the company is offering 1.8 million shares at $0.25 ($0.19), representing 15.2 per cent of the group’s post-IPO share capital of 118.47 million shares.
The IPO comprises a public offer of 400,000 shares at $0.19 each and a placement of 17.6 million placement shares at $0.19 each. Based on the issue price of $0.19 per share, Jawala expects its post-IPO market capitalisation to be about $29.6 million ($22.1 million).
The invitation opened on May 25, 2018 and will close on 12pm SGT, May 30, 2018. Jawala’s shares will commence trading on 9am SGT, June 1, 2018.
“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. Moving forward, we will dedicate out efforts to ensuring the sustainability of our business and generating maximum returns for our shareholders,” said Jawala CEO and executive director Jema Khan.
Incorporated in August 2017, Jawala is a forest resource company focusing on industrial tree plantations in Sabah in East Malaysia. It practices the sustainable management of forestry resources as well as the planting, extraction and timber sale.
Jawala is licensed to manage a Commercial Forest Reserve (Class II) of about 11,043 hectares in Sapulut Forest Reserve (estimated 9,037 hectares for planting) until December 31, 2115 with potential for a 100-year period extension at the state government’s discretion.
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