PETALING JAYA: Cropmate Bhd has signed an underwriting agreement with Hong Leong Investment Bank Bhd (HLIB) for its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia.
In a statement, the fertiliser manufacturer and supplier said the IPO exercise will involve the public issue of 210 million new ordinary shares.
This represents 28.4% of the enlarged issued share capital, with an offer for sale of 50 million existing shares, representing 6.8% of the enlarged issued share capital of 738 million ordinary shares.
The allocation of the IPO shares will involve an institutional offering of approximately 208.34 million IPO shares, representing 28.2% of the enlarged issued share capital.
Additionally, 92.25 million shares will be reserved for Bumiputera investors approved by the Ministry of Investment, Trade and Industry, including 42.25 million new ordinary shares and 50 million existing shares.
Meanwhile, 116.09 million IPO shares will be allocated to other institutional and selected investors.
The retail offering will comprise 51.66 million shares, representing 7% of the enlarged issued share capital, while 36.90 million IPO shares will be for application by the Malaysian public via balloting, equally allocated between Bumiputera (representing 2.5% of the enlarged issued share capital) and non-Bumiputera (representing 2.5% of the enlarged issued share capital) investors.
Additionally, 14.76 million shares will be reserved for application by eligible directors, eligible employees and persons who have contributed to the success of the company.
HLIB will act as the principal adviser, sponsor, underwriter and bookrunner, and will underwrite the entire 51.66 million shares offered under the retail offering of the IPO.
In the same statement, Cropmate managing director Lee Chin Yok said the IPO marked a key milestone for the company, as it will be the first pure-play fertiliser company to be listed on Bursa Malaysia.
