ACE MARKET-BOUND FARM PRICE AIMS TO RAISE RM24.5 MLN FROM IPO

KUALA LUMPUR, April 24 (Bernama) -- Farm Price Holdings Bhd aims to raise RM24.5 million from its initial public offering (IPO).

The company is set for its listing on Bursa Malaysia Securities’ ACE Market on May 14.

Managing director Tiong Lee Chian said the group intended to use the proceeds for its expansion plans, with RM6.4 million earmarked for the construction of new facilities, RM2 million to purchase machinery, equipment and logistic fleet, RM1.6 million for its regional distribution and procurement centre, RM10.58 million for working capital and the remaining for listing expenses.

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He said the group is mulling the expansion of its retail segment in Singapore, due to the rising demand from the neighbouring country.

"As for now, we will double the size of our Senai centralised distribution centre in Johor to cater for the growing demand.

"We shall expand our value-added processing areas, purchase more machinery and equipment and grow our in-house transportation fleet in order to provide a fresher, faster and more convenient experience for our customers," he said in his speech during the launch of the company's prospectus here, today.

To expand its reach, he said the group would also establish new regional distribution centres with cold room facilities in Nilai, Negeri Sembilan and Cameron Highlands, Pahang, as well as setting up a sales and marketing office in Singapore.

Upon its listing, the fresh vegetables, food and beverages wholesaler and distributor will have a market capitalisation of RM108 million, based on an enlarged issued share capital of 450 million shares and an IPO price of RM0.24 per share.

The listing exercise would include 102 million new ordinary shares in Farm Price, constituting 22.67 per cent of the group’s enlarged share capital.

A private placement will also be conducted for the offer-for-sale of 33 million existing shares, equivalent to 7.33 per cent of the enlarged shares.

Out of the 102.00 million shares, 22.50 million shares are allocated for the Malaysian public’s subscription via balloting; and 11.25 million shares for eligible directors, employees and persons who have contributed to the success of the group (pink form allocations), while the remaining 68.25 million shares are allotted for private placements to selected investors.

Alliance Islamic Bank Bhd serves as the principal adviser, sponsor, sole underwriter and placement agent for the IPO exercise.

Application for the IPO starts today and will be closed on April 30, 2024, at 5 pm.

-- BERNAMA