The estimated gross proceeds to be raised from our Public Issue of RM136.4 million shall be utilised in the following manner:
| Utilisation of proceeds | RM'000 | % | (1)Estimated timeframe for use for utilisation |
|---|---|---|---|
| Expansion of land banks for oil palm plantation | 42,000 | 30.8 | Within 24 months |
| Capital expenditures for existing plantation lands | 10,000 | 7.3 | Within 18 months |
| Setup of PK crushing facility | 9,000 | 6.6 | Within 12 months |
| Refurbishment and/or upkeep of existing palm oil mill | 12,000 | 8.9 | Within 24 months |
| Capital expenditures for refurbishment and construction of workers/staff housing quarters | 10,000 | 7.3 | Within 24 months | Capital expenditures to expand coverage of electricity supply | 10,000 | 7.3 | Within 24 months | Repayment of loan due to a related party | 30,000 | 22.0 | Within 6 months | Working capital | 3,420 | 2.5 | Within 12 months | Estimated listing expenses | 9,980 | 7.3 | Immediate |
| Total | 136,400 | 100.00 |
Note:
| (1) | From the date of our Listing. |
| The Offer for Sale is expected to raise gross proceeds of approximately RM19.0 million which will accrue entirely to our Selling Shareholder and is proposed to be utilised for repayment of loans and borrowings of MKH Group and to defray expenses relating to the Offer for Sale. There is no minimum subscription to be raised from our IPO. |
* Please read this section in conjunction with Section 4.9 from page 29 to page 39 of MKH Oil Palm (East Kalimantan) Berhad's Prospectus dated 29 March 2024.