From left: Agricore independent director Koay Hooi Lynn, chairman Fu Yew Sun, managing director Oon Boon Khong, deputy chairman Datuk Keh Chuan Seng, M&A Equity Holdings Bhd Datuk Bill Tan, independent director Teh Boon Beng and independent director Lee Seow Ling
KUALA LUMPUR: Agricore CS Holdings Bhd surged 58% as it commenced trading on the ACE Market of Bursa Malaysia after an initial public offering (IPO) exercise that raised RM25.9mil.
The food ingredients supplier racked up a 29 sen gain over the IPO price at the opening bell to 79 sen a share and maintained a steady climb.
As at 9.17am, the share had risen 35.5 sen to 85.5 sen a share after 35.65 million shares done, making it the most actively traded counter on the market so far.
There was strong demand for the company's shares at the IPO stage. The 10.14 million new shares made available to the Malaysian public via balloting were oversubscribed by 130.99 times, after a total of 15,304 applications for 1.134 billion new shares were received.
The Bumiputera public portion of shares was oversubscribed by 113.57 times, after a total of 8,594 applications for 580.88 million new shares received.
For the non-Bumiputera public portion, a total of 6,710 applications for 757.54 million new shares were received, which represents an oversubscription rate of 148.42 times.
Meanwhile, the 10.14 million new shares for its eligible directors, employees and persons who contributed to the success of Agricore Group were also fully subscribed, and the 31.43 million shares made available to Bumiputers investors by way of private placement were also fully placed out.
Equipped with the IPO funding, Agricore is set to increase inventory levels by expanding its overall storage capoacity by 30%, and growing its sales team headcount by 50%.
Additionally, the company aims to enhance its research and development (R&D) capabilities to ensure the delivery of high-quality ingredients to its customers.
