Farm Fresh Bhd is due to make its debut on Bursa Malaysia’s Main Market in the first quarter of 2022. Backed by Khazanah Nasional Bhd, this debut is billed as the country’s next big listing.
Farm Fresh has signed the underwriting agreement with CIMB Investment Bank Bhd, Maybank Investment Bank Bhd, Affin Hwang Investment Bank Bhd, AmInvestment Bank Bhd, Hong Leong Investment Bank Bhd and RHB Investment Bank Bhd on February, 16.
The IPO reportedly is estimated to raise about RM2 billion to the company and its major shareholders.
According to Bloomberg, it is reported that Farm Fresh had attracted nearly 30 cornerstone investors, including Aberdeen Standard Investments and AIA Group Ltd, for the IPO.
The dairy producer said the IPO will see an offer of up to 743.2 million shares comprising 520.2 million existing shares and a public issue of 223 million new shares.
The group said of the 743.2 million, institutional investors would be offered up to 687.4 million shares or 37% of Farm Fresh’s enlarged issued shares capital.
The 37% of Farm Fresh’s enlarged issued share capital includes 167.2 million issue shares and up to 65 million offer shares to bumiputra investors approved by the Ministry of International Trade änd Industry (Miti).
Up to 455.2 million offer shares have been allocated to Malaysian institutional and selected investors (apart from bumiputra investors approved by Miti) as well as foreign institutional and selected investors outside the United States.
Furthermore, Farm Fresh has also set aside 55.7 million issue shares representing about 3% of its enlarged issued share capital with 18.6 million issue shares reserved for application and the remaining 37.2 million issue shares is reserved for application by the Malaysian public.
Farm Fresh group managing director and group chief executive officer Loi Tuan Ee said it had grown into one of the nation’s leading dairy producers despite stiff competition from other brands in the span of 12 years.
“This underwriting ceremony takes us one step closer to our proposed debut on the main market of Bursa,” he said.
CIMB IB chief executive officer (CEO) Jefferi Hashim said Farm Fresh’s combination of innovative products and business model had proven its resilience in a challenging economic environment and was poised for further growth as the economy recovers.
Jefferi said Farm Fresh’s journey was truly a homegrown success story, backed by a strong and experienced local management team.
On the other hand, Maybank IB CEO Datuk Fad’l Mohamed said as one of the largest integrated dairy players in Malaysia, Farm Fresh was well poised for the next stage of growth, as it enlarged its footprint in the domestic and regional consumer space with its strong branding.
Source here
Discussion about this post