KUALA LUMPUR (Feb 15): Dairy producer Farm Fresh Bhd has signed an underwriting agreement in conjunction with its initial public offering (IPO) on the Main Market of Bursa Malaysia Securities.
In a statement on Tuesday (Feb 15), Farm Fresh said it signed the agreement with CIMB Investment Bank Bhd (CIMB IB), Maybank Investment Bank Bhd, Affin Hwang Investment Bank Bhd, AmInvestment Bank Bhd, Hong Leong Investment Bank Bhd and RHB Investment Bank Bhd.
The IPO — of up to 743.2 million ordinary shares in Farm Fresh — comprises an offer for sale of up to 520.2 million existing shares (offer shares) and a public issue of 223 million new shares.
The 743.2 million IPO shares comprise an institutional offering of up to 687.4 million IPO shares and a retail offering of 55.7 million issue shares.
Farm Fresh is expected to be listed in the first quarter of 2022.
Farm Fresh group managing director and group chief executive officer (CEO) Loi Tuan Ee said the underwriting agreement takes the group one step closer to its planned debut on the Main Market of Bursa.
“In the span of 12 years, we have grown into a strong dairy producer despite stiff competition,” he said.
Meanwhile, CIMB IB CEO Jefferi Hashim said: "CIMB is proud to play an instrumental role in the IPO of Farm Fresh, a company that has grown rapidly in the Malaysian dairy space.
“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," said Jefferi.
Last Friday, Bloomberg, citing sources, reported that Farm Fresh had attracted almost 30 cornerstone investors, including Aberdeen Standard Investments and AIA Group Ltd, in a planned IPO.
Great Eastern Life Assurance, Franklin Templeton Investment and some Malaysian state funds had also signed on, and the first-time share sale is expected to raise about RM1 billion, according to Bloomberg.
Bloomberg also reported that Farm Fresh’s IPO is set to be the country’s biggest since last June, when CTOS Digital Bhd, which runs a credit reporting agency, and its shareholders raised RM1.21 billion.
CIMB IB is the sole principal adviser and a joint global coordinator, joint bookrunner, joint managing underwriter and joint underwriter of Farm Fresh’s IPO. Maybank IB is a joint global coordinator, joint bookrunner, joint managing underwriter and joint underwriter.
Affin Hwang IB, AmInvestment, Hong Leong IB and RHB IB are joint underwriters of the IPO.