Malaysia's Farm Fresh seeks to raise $238 mln in March IPO

Value Partners

28/02/2022 07:02

KUALA LUMPUR, Feb 28 (Reuters) - Farm Fresh Berhad plans to
raise 1 billion ringgit ($238.10 million) from its initial
public offering (IPO) next month, having secured 30 cornerstone
investors, the Malaysian dairy producer said on Monday.
    Upon listing on March 22, the company is expected to have a
market capitalisation of 2.5 billion ringgit.
    Farm Fresh said it has secured the backing of a record
number of cornerstone investors in a Malaysian IPO, with 30
local and regional asset management firms, insurers and funds
such as AIA, JPMorgan Asset Management, Employees Provident Fund
and Value Partners Hong Kong.
    The investors will take up about 80% of the institutional
offering portion in the IPO, the integrated producer of dairy
goods said in a statement after launching its IPO prospectus.
    The IPO involves a sale of up to 520.2 million existing
shares and a public issue of 223 million new shares based on the
initial retail price of 1.35 ringgit per share.
    Farm Fresh said about 301 million ringgit of the IPO
proceeds will be utilised to build a manufacturing hub, dairy
farm and integrated processing facility in Malaysia to expand a
production facility in Australia, and also for regional
expansion.
    "Post-listing, Farm Fresh will endeavour to execute our
plans to continue gaining market share and growing our sales in
Malaysia and abroad," Group Managing Director and Chief
Executive Officer Loi Tuan Ee said.


    ($1 = 4.2000 ringgit)

 (Reporting by Liz Lee; Editing by Sherry Jacob-Phillips)
 ((liz.lee@thomsonreuters.com; +603 23338008; Twitter:
@livinglizly;))