KUALA LUMPUR: Fertiliser manufacturer and supplier Cropmate Bhd is targeting to raise RM42mil through its initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd.
Cropmate’s IPO involves the issuance of 210 million new shares at a retail price of RM0.20 per share.
According to Cropmate, the IPO proceeds will be allocated with RM17.1mil for working capital, RM16.7mil to part-finance the purchase of Factory Lot 8949 and Factory Lot 8950, RM3.2mil for capital expenditure including a research and development (R&D) and test laboratory, and RM5mil for listing expenses.
“As the first-ever pure-play fertiliser company to be listed on Bursa Malaysia, this IPO represents our commitment to enhancing agricultural productivity and sustainability in Malaysia.
“With the proceeds, we aim to expand our R&D capabilities and continue to innovate in the fertiliser industry. We are excited about the opportunities this IPO opens for Cropmate as we strengthen our presence in the Malaysian agricultural sector,” managing director Lee Chin Yok said in a statement.
“Our focus on expanding our R&D capabilities and securing strategic assets aligns with our long-term vision of becoming a leading force in the industry. The additional working capital will also provide us the necessary resources to meet the rising demand for high-quality fertilisers, especially amongst the durian orchards and oil palm plantations, while ensuring continuous innovation and excellence in our operations,” he added.
Meanwhile, Hong Leong Investment Bank Bhd group managing director/chief executive officer Lee Jim Leng said: “Cropmate is well-positioned to capture the growth in Malaysia’s agricultural sector, especially with its focus on innovation and sustainability, which allows them to play a pivotal role in strengthening food security as our population continues to grow. Their strategic initiatives, backed by a strong operational foundation, ensure that Cropmate will continue to thrive and lead the fertiliser industry moving forward.”
Hong Leong Investment Bank is the principal adviser, sponsor, underwriter and bookrunner for the IPO.
