PETALING JAYA: Farm Fresh Bhd has entered into an underwriting agreement for its initial public offering (IPO) on Bursa Malaysia’s Main Market slated for the first quarter of 2022.
The dairy producer signed the agreement with CIMB Investment Bank, Maybank Investment Bank, Affin Hwang Investment Bank and RHB Investment Bank.
The group 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.
A total of 687.4 million or 37% of Farm Fresh’s enlarged issued share capital has been allocated as institutional offering, which 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.
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.
“In the span of 12 years, we have grown into one of the nation’s leading dairy producers despite stiff competition from other brands,” Farm Fresh managing director and group CEO Loi Tuan Ee said in a statement.
He remarked that the underwriting exercise takes it one step closer to the group’s debut on Bursa’s Main Market.
CIMB Investment Bank CEO Jefferi Hashim said it is proud to play a role in the IPO.
He commented that Farm Fresh’s combination of innovative products and business model has proven its resilience in a challenging economic environment and is poised for further growth as the economy recovers.
“Its journey is truly a home-grown success story, backed by a strong and experienced local management team,” Jefferi said.
Maybank Investment Bank CEO Datuk Fad’l Mohamed said that Farm Fresh, as one of the largest integrated dairy players in Malaysia, is well poised for the next stage of growth as it enlarges its footprint in the domestic and regional consumer space with its strong branding.
For the IPO, CIMB Investment Bank is the sole principal adviser, as well as the joint global coordinator, joint bookrunner, joint managing underwriter alongside Maybank Investment Bank.
Credit Suisse is also participating as the joint global coordinator and joint bookrunner for the listing. Meanwhile, Affin Hwang Investment Bank, AmInvestment, Hong Leong Investment Bank and RHB Investment Bank are the joint underwriters for the IPO.