March 1, 2022

Malaysia dairy firm Farm Fresh seeks to raise US$238 million in IPO

Malaysia-based dairy company Farm Fresh Berhad plans to raise MYR 1 billion (~US$238 million; MYR 1 = US$0.24) from its initial public offering (IPO) in March 2022 after securing 30 cornerstone investors, Reuters reported.

Farm Fresh is expected to have a market capitalisation of MYR 2.5 billion (~US$596 million) upon listing on March 22, 2022.

The company said it has secured the backing of 30 local and regional asset management firms, insurers and funds. These include AIA, JPMorgan Asset Management, Employees Provident Fund and Value Partners Hong Kong.

80% of the institutional offering portion in the IPO will be taken up by the investors.

Up to 520.2 million existing shares and a public issue of 223 million new shares will be sold in the IPO based on the initial retail price of MYR 1.35 (~US$0.32) per share.

Farm Fresh said MYR 301 million (~US$71 million) of the IPO proceeds will be channelled towards constructing a manufacturing hub, dairy farm, and integrated processing facility in Malaysia to expand a production facility in Australia. Funds will also be used for regional expansion.

Loi Tuan Ee, Farm Fresh group managing director and chief executive said the company aims to continue gaining market share and grow sales in domestically and internationally.

-      Reuters