KUALA LUMPUR (Oct 5): Khazanah Nasional Bhd-backed Farm Fresh Bhd (formerly known as Holstein Milk Company Sdn Bhd) , an integrated dairy farming player, has filed a draft prospectus for an initial public offering (IPO) on the Main Market of Bursa Malaysia.

According to the group’s draft IPO prospectus posted on the Securities Commission Malaysia (SC) website, the proposed IPO will involve the sale of 743.18 million ordinary shares, comprising 222.95 million new shares and 520.23 million existing shares.

Of the total 743.18 million shares, up to 687.44 million shares will be involved in the institutional offering to Malaysian and foreigner institutional and selected investors, including bumiputera investors approved by the Ministry of International Trade and Industry (MITI). The remaining 55.74 million shares will be made available for retail investors.

The draft prospectus exposure confirms a report by The Edge Malaysia that the company submitted documents for a listing on Bursa.

The Edge, quoting sources, reported that Farm Fresh’s IPO is expected to take place within the first half of next year, and it is looking at a potential valuation of over RM2 billion from the IPO.

Talk of an IPO of the Johor-based company first emerged in August last year after Bloomberg reported that the company’s shareholders were considering to go for the exercise.

CIMB Investment Bank is the sole principal adviser for the IPO exercise. The bank, together with Maybank Investment Bank and Credit Suisse, are joint global coordinators, joint bookrunners and joint underwriters for the deal.

Farm Fresh is 30%-owned by sovereign wealth fund Khazanah via the latter’s investment vehicle, Agrifood Resources Holdings Sdn Bhd.

Other shareholders of Farm Fresh are Rainforest Capital Sdn Bhd (46.67%) and Farmchoice Foods Sdn Bhd (23.33%). Farm Fresh founder and chief executive officer Loi Tuan Ee, 57, and his family are shareholders of both these companies, along with others, according to The Edge.