KUALA LUMPUR: Cropmate Bhd aims to raise RM42 million for its initial public offering (IPO), priced at 20 sen per share to enhance operations and customer service capability in Malaysia's fertiliser industry
The conventional and specialty fertiliser producer and distributor announced the issuance of 210 million new shares on the ACE Market of Bursa Malaysia.
Cropmate managing director Lee Chin Yok said as the first-ever pure-play fertiliser company to be listed on Bursa Malaysia, the IPO represents its commitment to enhancing agricultural productivity and sustainability in Malaysia.
"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.
The company plans to allocate RM17.1 million for working capital to support Cropmate Bhd's growing operations and RM16.7 million to part finance the purchase considerations of Factory Lot 8949 and Factory Lot 8950 where Cropmate's operations are located.
Meanwhile, RM3.2 million is planned for capital expenditures including setting up a research and development (R&D) and test laboratory and RM5 million to defray listing expenses.
Hong Leong Investment Bank Bhd is the Principal Adviser, Sponsor, Underwriter and Bookrunner.