Malaysian timber company Jawala lodges preliminary documents for Catalist IPO

SINGAPORE - Sabah-based timber company Jawala has lodged a preliminary prospectus ahead of a planned initial public offering (IPO) on the Singapore Exchange's Catalist board.

Terms on pricing, the size of the offering and timing have yet to be set. UOB Kay Hian is the sponsor, issue manager, underwriter and placement agent for the deal.

Jawala, which manages an 11,043-hectare licensed area in the Sapulut Forest Reserve in Sabah, will use proceeds from the offering to develop the plantation site within the licensed area. It will also use some of the proceeds for working capital.

The main direct shareholder of Jawala is privately held Jawala Corp. Jawala Corp is in turn controlled by the family of Abdul Majid Khan, a prominent Sabah businessman who is also chairman of Malaysia-listed wood and construction group Jaycorp, and one Chee Ah What, who is unrelated to the family.

Jawala posted a net profit of RM1.7 million (S$575,300) for the year ended July 31, 2017. For the first fiscal quarter ended Oct 31, 2017, net profit was RM2.9 million. The company's directors plan to pay out at least 20 per cent of profit after tax as dividends to shareholders for fiscal 2018 and 2019.