Farm Price sets sights on RM24.48 mln ACE Market IPO for expansion
KUALA LUMPUR: Johor-based wholesaler and distributor of fresh vegetables, food and beverage (F&B) products and other groceries, Farm Price Holdings Bhd (Farm Price), has successfully launched its prospectus on Thursday in conjunction with its initial public offering (IPO) exercise on the ACE Market of Bursa Malaysia.
Farm Price, through its subsidiaries, is principally involved in the wholesale and distribution of fresh vegetables, F&B products and other groceries.
The group also operates a retail store in Ulu Tiram, Johor selling fresh vegetables together with F&B products and other groceries directly to end-consumers.
Backed by a 20-year track record in fresh vegetable wholesale distribution, Farm Price currently operates its Senai Centralised Distribution Centre in Johor.
The group’s operations is supported by six regional distribution centres located in Johor, Selangor, Perak, and Penang. These distribution centres focus on the wholesale distribution of F&B products and other groceries.
Farm Price serves a diverse customer base, including resellers such as supermarkets, minimarkets, grocery stores, and wholesalers and end-user industries including food service operators, food manufacturers, and individual consumers.
Farm Price managing director Dr Tiong Lee Chian said, “Our prospectus launch marks a pivotal moment for Farm Price. It demonstrates the team’s unwavering dedication for growth and excellence since our humble beginning 20 years ago.
“Through grit and perseverance, our reputation for reliability and quality has delivered consistent growth over the years.
“Now, with the upcoming proceeds from the IPO, we can accelerate our strategic expansion plans to grow much faster and capture the rising demand for fresh produce.”
“As part of our growth strategy, we plan to increase the built-up area of our Senai Centralised Distribution Centre to 149,548 square feet, constructing additional office space, cold room facilities, and ambient operational and warehouse areas.
“We will establish additional regional distribution centres with cold room facilities in Nilai, Negeri Sembilan and Cameron Highlands, Pahang, along with a new sales and marketing office in Singapore.”
Farm Price will also invest in new machinery and equipment to optimise workflow efficiency and automate processes.
This is in anticipation of increase in customer orders, while simultaneously reducing reliance on manual labour.
Farm Price will have a market capitalisation of RM108 million upon listing based on an enlarged issued share capital of 450.00 million shares and an IPO price of RM0.24 per share.
Following the prospectus launch, applications for the public issue are open from today and will be closed on April 30, 2024 at 5pm.
The group is scheduled to be listed on the ACE Market of Bursa Securities on May 14, 2024.
Alliance Islamic Bank Berhad is the Principal Adviser, Sponsor, Sole Underwriter and Placement Agent for the IPO Exercise.*