March 23, 2022

Malaysian dairy producer Farm Fresh shares 26% up from US$238 million IPO

Malaysian dairy producer Farm Fresh Berhad saw its shares open 26% higher compared to its offer price on its market debut, the country's biggest listing since July 2021, Reuters reported.

Farm Fresh shares went up as high as 34% in the first few minutes of trading. The company raised MYR 1 billion (~US$237.64 million; MYR 1 = US$0.24) in its initial public offering (IPO).

Loi Tuan Ee, Farm Fresh group managing director and chief executive said they will use the proceeds to build a new manufacturing hub, a dairy farm, and an integrated processing facility in Malaysia.

The company will also expand its Australian production facility and venture into neighbouring regions, as it plans to export to Hong Kong, Indonesia, and the Philippines.

In February 2022, Farm Fresh said it had secured a record number of investors for an IPO in Malaysia. These include with 30 local and regional asset management firms, insurers and funds such as AIA, JPMorgan Asset Management, and the Employees Provident Fund. The the sole principal adviser and joint global coordinator on the deal was CIMB Investment Bank.

-      Reuters