KUALA LUMPUR: Farm Fresh Bhd, an integrated dairy firm 30 per cent-owned by Khazanah Nasional Bhd, is heading for a listing on Bursa Malaysia’s Main Market.
Farm Fresh’s initial public offering (IPO) would entail the sale of 743.18 million shares, or 40 per cent of its enlarged issued share capital, according to its draft IPO prospectus posted on the Securities Commission website.
The 743.18 million shares comprise 222.95 million new shares and 520.23 million existing shares.
Of the total 743.18 million shares, up to 687.44 million shares will be involved in the institutional offering to Malaysian and foreign institutional investors as well as selected investors. This includes Bumiputera investors approved by the International Trade and Industry Ministry.
The remaining 55.74 million shares will be made available for retail investors.
Sovereign wealth fund Khazanah owns the 30 per cent stake through Agrifood Resources Holdings Sdn Bhd.
Other shareholders of Farm Fresh are Rainforest Capital Sdn Bhd (46.67 per cent) and Farmchoice Foods Sdn Bhd (23.33 per cent).
Farm Fresh founder and chief executive officer Loi Tuan Ee, 57, and his family are shareholders of both the companies.
Formed on March 24 2010 under the name The Holstein Milk Company Sdn Bhd, Farm Fresh turned into a fast-growing vertically integrated dairy group engaged in farming, manufacturing and distribution of various dairy products and plant-based products.
It currently operates five dairy farms in Malaysia and one dairy farm in Australia.
The company’s diverse product portfolio consists primarily of chilled RTD (ready-to-drink) milk products, UHT/ambient RTD products, plant-based products, yoghurt products and fruit jam and sauces.
Farm Fresh posted RM36.23 million net profit on the back of RM490.5 million revenue in the year ended March 31 2021, up from RM36.22 million net profit and RM303.07 million revenue in the preceding year.
In its draft prospectus, Farm Fresh said it planned to enhance its capabilities across the value chain in Malaysia by expanding upstream capacity while improving operational efficiency and deepening its distribution network.
It will increase its production capabilities in Australia through the expansion of its Kyabram facility to further support operations in Malaysia and Singapore as well as serve as an export hub to expand into the adjacent markets in the Southeast Asia and Asia Pacific regions.
Talk of Farm Fresh’s IPO first emerged in August last year after Bloomberg reported that the company’s shareholders were considering to go for the exercise.
CIMB Investment Bank is the sole principal adviser for the IPO.
The bank, together with Maybank Investment Bank and Credit Suisse, are joint global coordinators, joint bookrunners and joint underwriters for the deal.
Source: New Straits Times
