KUALA LUMPUR (March 10): Khazanah Nasional Bhd-backed Farm Fresh Bhd said on Thursday (March 10) the dairy-farm operator has fixed its institutional and final retail initial public offering (IPO) share price at RM1.35 each following completion of the institutional offering's bookbuilding process on the same day.

"The retail offering closed at 5pm on Tuesday, March 8, 2022," Farm Fresh said in a statement to Bursa Malaysia.

Bursa Malaysia Main Board-bound Farm Fresh is scheduled to be listed on March 22, 2022, according to Farm Fresh's Bursa filings.

Farm Fresh's IPO involves the issuance of up to 743.18 million shares comprising an offer for sale of up to 520.23 million existing shares in the company and a public issue of 222.95 million new shares in the firm, according to the company's prospectus, which was filed with Bursa on Feb 28, 2022.

At the IPO price of RM1.35 a share, Farm Fresh will have a market capitalisation of about RM2.51 billion upon listing, based on the company's enlarged number of issued shares at 1.86 billion, according to Farm Fresh's prospectus.

The public issue of 222.95 million new shares will raise RM300.98 million for the company's expansion, based on the IPO price of RM1.35 a share, the prospectus showed.

According to the prospectus, 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 in Farm Fresh's IPO, the prospectus shows.

Farm Fresh said in a separate Bursa filing on Thursday that upon listing, the company’s shares may be subject to stabilising action by the stabilising manager comprising Maybank Investment Bank and its affiliates.

"The maximum period during which Maybank Investment [Bank] and/or its affiliates, being the stabilising manager in respect of the IPO, may stabilise the price of the shares shall be from the commencement of trading of the shares on the Main Market of Bursa until the earlier of:

"(i) the date falling 30 days from and including the listing date; or

"(ii) the date when the stabilising manager has bought on the Main Market of Bursa, an aggregate of 44.59 million (44,590,900) shares, representing up to about 6% of the total number of shares offered under the IPO," Farm Fresh said.

According to Farm Fresh, an aggregate of up to 44.59 million (44,590,900) shares in the company are the subject of an over-allotment option.

Farm Fresh said the stabilising manager may purchase an aggregate of up to 44.59 million (44,590,900) shares to undertake the stabilising action.

Farm Fresh's website shows that founder Loi Tuan Ee enlisted the help of his old friend Azmi Zainal as a business partner and brought in Malaysian sovereign wealth fund Khazanah as an investor in Farm Fresh to help expand its operations.

"These collaborations laid the groundwork for the company’s (Farm Fresh) continued success," Farm Fresh said.