KUALA LUMPUR: Shares in fertiliser manufacturer Cropmate Bhd commenced trading on the ACE Market of Bursa Malaysia with a 22.5% premium over its initial public offering (IPO) price
The company, which specialises in the blending of conventional and speciality fertilisers, opened 4.5 sen higher from its reference price at 24.5 sen a share.
"The funds raised through our IPO will enable us to acquire key production assets, finance capital expenditure and provide additional working capital, this will enhance our ability to serve Malaysia’s agricultural sector.
"As the first pure-play fertiliser company to be listed on Bursa Malaysia, we are committed to contributing to sustainable farming practices, supporting the nation’s food security goals, and delivering long-term value for all our stakeholders," said independent non-executive chairman Lau Yoon Kwai in a statement.
Cropmate’s IPO raised a total of RM42mil, of which RM17.1mil will be allocated to support its business objectives and RM16.7mil will be used to fund the acquisition of strategic assets, including Factory Lots 8949 and 8950.
A further RM3.2mil will be used for capital expenditure including the upgrade of the automated weighing process, the setting up of a research and development and test laboratory as well as purchase of equipment and vehicles, and RM5mil has been set aside for listing expenses.
