Prior to its listing on Bursa Malaysia on the 22nd of March, home-grown dairy producer Farm Fresh has debuted their plans to raise RM1 billion from its initial public offering (IPO) scheduled for this month. Announced at its prospectus launch on Monday, Feb 28th, this involves an offer for 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 RM1.35 per share, making it the nation's largest IPO listing since June 2021.
The IPO was made possible with the secured support from a record-breaking number of 30 cornerstone investors, the most seen in a Malaysian IPO to date.
The investors include Abrdn, Affin Hwang Asset Management, AIA, Alcea Rosea (Creador), Barings Singapore, Eastsprings Investments, Employees Provident Fund, Fortress Capital Asset Management, Franklin Templeton Asset Management (Malaysia), Great Eastern Life Assurance (Malaysia), Hong Leong Asset Management, Hong Leong Assurance, JPMorgan Asset Management (Singapore), KAF Investment Funds, Kenanga Investors, Kumpulan Wang Persaraan (Diperbadankan), Lembaga Tabung Haji, Manulife Investment Management, Maybank Asset Management, Merit Glory (Ikhlas Capital), New Silk Road Investment, OAKS Emerging Umbrella Fund, Permodalan Nasional Bhd, Principal Asset Management, Social Security Organisation, UBS Asset Management (Singapore), UOB Asset Management (Malaysia), Urusharta Jamaah, Value Partners Hong Kong and Zurich Life Insurance Malaysia.
Proceeds raised via public issue to the amount of RM301 million will be used to construct a new manufacturing hub, dairy farm and integrated processing facility in Malaysia, as well as the regional expansion of their facilities with an Australian-based production facility and for working capital together with listing expenses.
CEO and Group Managing Director, Mr. Loi Tuan Ee, stated that the company is ‘well positioned to capitalise on the sustained strong consumer demand for fresh milk products in addition to addressing the insufficient local milk production visible today.’
“Post-listing, Farm Fresh will endeavour to execute our plans to continue gaining market share and growing our sales in Malaysia and abroad. By optimising our growth, we endeavour to reward our shareholders through the adopted dividend policy that targets to return 25% of our annual earnings to shareholders,” adds Loi.
Applications for the public issue portion are open to from now until March 8th at 5pm.