Agricore targets RM25.9mil from listing

From left: Agricore CS Holdings Bhd chairman Fu Yew Sun, Agricore managing director Oon Boon Khong, Agricore deputy chairman Datuk Keh Chuan Seng, M & A Equity Holdings managing director Datuk Bill Tan and M&A Securities Sdn Bhd head of corporate finance Gary Ting.

PETALING JAYA: Food ingredient supplier Agricore CS Holdings Bhd plans to raise RM25.9mil from its listing on the ACE Market of Bursa Malaysia.

It plans to use RM18.9mil (74%) of the funds to expand its sourcing and distribution business by increasing inventory levels at it Bukit Minyak premises and its new regional storage facility in Klang, Selangor.

A further RM2.7mil (10%) of the proceeds will be used to increase its storage capacity by setting up a new regional storage facility with a built-up area of 30,000 sq ft in Klang, Selangor.

Currently, all Agricore’s plant-based agricultural products are stored in the Bukit Minyak premises prior to delivery to its customers.

The utilisation rates of the storage space at Bukit Minyak premises were recorded at an average of 91.1% for financial year ended Dec 31, 2020 (FY20) to FY23.