KUALA LUMPUR (April 5): Johor-based wholesaler and distributor of fresh vegetables, food and beverage (F&B) products and other groceries Farm Price Holdings Bhd has entered into an underwriting agreement with Alliance Islamic Bank Bhd ahead of its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia.
Farm Price’s IPO exercise encompasses a public issuance of 102 million new ordinary shares, representing 22.67% of its enlarged share capital, as well as an offer for sale of 33 million existing shares, or 7.33% of its enlarged share capital, via private placement to selected investors.
Out of the 102 million new shares, 22.5 million shares will be made available to the Malaysian public via balloting, 11.25 million shares to its eligible directors, employees and persons who have contributed to the success of Farm Price (pink form allocations), while the remaining 68.25 million shares will go towards private placements to selected investors.
In a statement on Friday, Farm Price said pursuant to the underwriting agreement, Alliance Islamic Bank shall underwrite the 33.75 million new shares made available to the Malaysian public and pink form allocations.
Farm Price operates a retail store in Ulu Tiram, Johor, to sell fresh vegetables, F&B products and other groceries directly to end-consumers.
Farm Price managing director Dr Tiong Lee Chian said the fresh vegetables industry is crucial to Malaysia's food security, supporting public health, sustenance, and affordability.
“As a wholesale distributor, we play a key role in the supply chain where we source fresh vegetables from domestic and foreign growers, distributors and importers to provide us with a range of vegetables to meet the fresh vegetable requirements of our customers mainly in Johor and Singapore,” he said.
Tiong said that in addition to variety, the company also provides value-added services such as the processing of prepacked and fresh-cut vegetables to enhance convenience and reduce preparation time for customers.
Farm Price is scheduled to be listed on the ACE Market by May 2024, with Alliance Islamic Bank as the principal adviser, sponsor, sole underwriter and placement agent for the IPO exercise.