Cropmate seeks to raise RM42mil to buy factories

Hong Leong Investment Bank Bhd group managing director/chief executive officer Lee Jim Leng (left) and Cropmate Bhd managing director Lee Chin Yok.

PETALING JAYA: ACE Market-bound fertiliser manufacturing company, Cropmate Bhd, aims to raise RM42mil through the issuance of 210 million new shares at an initial public offering (IPO) price of 20 sen apiece.

According to a statement, the company will be allocating RM17.1mil of its IPO proceeds to working capital to support the group’s growing operations and RM16.7mil to partly finance the purchase of two factories – where Cropmate’s operations are located.

The remainder of the proceeds will be put aside for capital expenditure, including the setting up of a research and development (R&D) and test lab.

“With the proceeds, we aim to expand our R&D capabilities and continue to innovate in the fertiliser industry. The additional working capital will provide us the necessary resources to meet the rising demand for high-quality fertilisers, especially among the durian orchards and oil palm plantations, while ensuring continuous innovation and excellence in our operations,” Cropmate managing director Lee Chin Yok stated.

The IPO also entails an offer for sale of 50 million existing shares. Upon listing, Cropmate is expected to have a market capitalisation of RM147.6mil.

Cropmate is a local fertiliser manufacturer and supplier, which specialises in the formulation and blending of conventional and specialty fertilisers. The group is scheduled to debut on the ACE Market of Bursa Malaysia on Dec 5, 2024.

Hong Leong Investment Bank Bhd is the principal adviser, sponsor, underwriter and bookrunner for the exercise.