(Photo: Johor Plantation Group)
Johor Plantation Group (JPG), a Malaysian palm oil manufacturer, officially listed on Bursa Malaysia on July 9. The IPO is expected to raise MYR 735 million (about USD 156 million), which will be used for green production and reforestation, aiming to halve carbon emissions by 2025 and expand the development of bio-methane as a new revenue source.
JPG expands green businesses through IPO as EU regulations tighten
JPG, backed by the Johor state government, is a subsidiary of Kulim Berhad under Johor Corp., a state-owned enterprise. Besides developing palm oil business, JPG is also involved in healthcare, food and beverage, and logistics. As of May, JPG owns 23 palm oil estates with a total area of 55,904 hectares, all certified by the Roundtable on Sustainable Palm Oil (RSPO).
Malaysia is the world's second-largest palm oil producer, with Europe being the primary export market, thus facing direct pressure from EU sustainability policies such as the EU Deforestation Regulation (EUDR). This regulation requires manufacturers of palm oil, cocoa, and other products to use forests within a legal timeframe, set to come into force by the end of 2024.
JPG General Manager Mohd Faris Adli Shukery is confident that the company's products can meet EU requirements. "Listing can accelerate the company’s achievement of net zero, especially with limited production that is all certified, meeting various regional regulations," he stated.
(Photo: Johor Plantation Group)
New oils refinery expected to boost JPG's revenue by 20%
The IPO size this time is the largest since March 2022. Prior to this, Malaysian dairy company Farm Fresh raised 1 billion Malaysian Ringgit (about USD 212 million), setting a new record. Subsequently, IPO activities across Southeast Asia slowed significantly, dampening market sentiment.
According to the JPG website, nearly 90% of the plants have traceable origins, demonstrating its commitment to environmental protection. The group aims to achieve net zero by 2050. Its subsidiary, JPG Greenergy Ventures, received the "BioNexus" status from the Malaysian Bioeconomy Development Corporation in early July 2024, recognizing its technology for converting palm waste into renewable energy.
Additionally, in January 2024, JPG partnered with Japan's Fuji Oil Holdings to establish a new company, planning to set up a specialty oils refinery primarily powered by renewable energy. The refinery is expected to be completed by 2026, with JPG’s new revenue projected to increase by at least 20%.
Source: Nikkei Asia, New Straits Times, Edge Malaysia, Bloomberg
