Farm Fresh Bhd IPO Malaysian public portion oversubscribed by 18.74 times

Friday 26 Apr 2024

KUALA LUMPUR (March 11): Farm Fresh Bhd’s initial public offering (IPO) for the Malaysian public portion was oversubscribed by 18.74 times.

It is scheduled to be listed on the Main Market of Bursa Malaysia on March 22.

The dairy producer received from the Malaysian public, a total of 45,694 applications for 733.54 million shares, with a value of RM990.28 million.

For the Bumiputera public portion, a total of 11,218 applications for 118.34 million shares were received, which represents an oversubscription rate of 5.37 times.

As for the remaining Malaysian public portion, a total of 34,476 applications for 615.2 million shares were received, which represents an oversubscription rate of 32.11 times.

Meanwhile, the 18.58 million shares available for application by the eligible persons were also fully subscribed.

“After securing a record of 30 cornerstone investors, which subscribed for 79.6% of the institutional offering size, the institutional offering, including over-allotment, has received an overwhelming demand of RM5.2 billion from domestic and global investors at the close of bookbuilding.

“For the retail offering, applications for a total of 752.12 million issue shares with a value of RM1.01 billion were received from the Malaysian public and eligible persons,” said Farm Fresh.

The group noted that the notices of allotment will be dispatched to all successful applicants on or before March 18.

Farm Fresh’s IPO involves the issuance of 743.18 million shares comprising an institutional offering of 687.44 million shares to Malaysian and foreign institutional and selected investors, including Bumiputera investors approved by the Ministry of International Trade and Industry.

The remaining is a retail offering of 55.74 million shares to the directors of Farm Fresh and its subsidiaries, eligible employees, persons who have contributed to the success of the group and the Malaysian public.

On Thursday (March 10), Farm Fresh said it had fixed the institutional and final retail IPO share price at RM1.35, following completion of the institutional offering's bookbuilding process on the same day.

At the IPO price of RM1.35, Farm Fresh will have a market capitalisation of about RM2.51 billion upon listing, based on its enlarged number of issued shares of 1.86 billion.

CIMB Investment Bank Bhd is the sole principal adviser in Farm Fresh's IPO.

CIMB Investment and Maybank Investment Bank Bhd are joint global coordinators, joint bookrunners, joint managing underwriters and joint underwriters.

Edited ByLee Weng Khuen

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