From left: Hong Leong Investment Bank Bhd head of equity market Phang Siew Loong, Cropmate financial controller Ian Siah Jun Ren, independent non-executive director Yeo Shu Pin, sales and technical director Leong Fo Seong, independent non-executive chairman Wayne Lau Yoon Kwai, managing director Lee Chin Yok, non-independent executive director Lee Cheng Seng, non-independent executive director David Lee Cheng Fei, independent non-executive director Tengku Faradiza Tengku Baharuddin, Hong Leong Investment Bank corporate finance co-head Shim Choon Lim and ECM acting head Suzanne Leong Sook Ling.
PETALING JAYA: Increased demand for durian in China is expected to be a key driver for newly listed fertiliser producer Cropmate Bhd’s growth in 2025.
Non-independent executive director David Lee Cheng Fei told the media that demand from China was noted to have spiked by more than 100%, which Malaysia was bound to benefit from.
“And with us being a fertiliser player in Malaysia, coupled with our speciality fertiliser that increases the fruit’s aroma, texture, as well as quality, we will leverage the opportunity,” Lee said during a press conference at the company’s listing ceremony, yesterday.
Explaining on the demand of fertiliser in Malaysia, he stated that the company is optimistic about the local demand growth, especially in the oil palm sector.
“If you look into the oil palm segment, there is limited land for expansion. And this leads farmers to focus on their existing harvest to maximise their yields,” he added.
The optimism about demand in the local fertiliser industry is also, again, supported by the demand for durian in China.
Cropmate made its debut on the ACE Market of Bursa Malaysia yesterday with an opening price of 24.5 sen, a premium of 22.5% from its initial public offering price of 20 sen per share.
Prior to the market debut, the group’s public offering of 260 million ordinary shares was oversubscribed by nearly 85 times and raised a total of RM42mil.
The majority of the funds will be allocated towards working capital for the purchase of input materials, such as macronutrients and micronutrients, for a total amount of RM17.14mil or 40.8%.
The remaining amount will be put aside for financing the purchase of its currently rented factory lots, capital expenditure, as well as listing expenses at RM16.7mil, RM3.2mil and RM5mil, respectively.
The capital expenditure consists of the purchase and installation of a process-control and conveyor-belt system, setting up a research and development and test laboratory, and the purchase of equipment and vehicles.
Cropmate closed 3.5 sen down at 21 sen yesterday. It was the most active stock, with 216.8 million shares changing hands.
