KUALA LUMPUR (Oct 14): Fertiliser manufacturer Cropmate Bhd has inked an underwriting agreement with Hong Leong Investment Bank Bhd (HLIB) in conjunction with its initial public offering (IPO) on the ACE Market of Bursa Malaysia.

In a statement, the group said its IPO encompasses a public issuance of 210 million new shares, representing 28.4% of its enlarged share capital, as well as an offer for sale of 50 million existing shares, which represents 6.8% of the enlarged share capital of 738 million shares.

The allocation of the IPO shares will involve an institutional offering of approximately 208.34 million shares and a retail offering of 51.66 million shares which HLIB will underwrite.

Of the institutional offering, about 92.25 million shares are reserved for Bumiputera investors approved by the Ministry of Investment, Trade and Industry, while 116.09 million shares are allocated to other institutional and selected investors.

For the retail offering, 36.9 million shares are available for application by the Malaysian public through balloting, equally divided between Bumiputera and non-Bumiputera investors while 14.76 million shares are reserved for eligible directors, employees, and individuals who have contributed to the company’s success.

“This IPO marks a key milestone in Cropmate’s journey, as we are the first-ever pure-play fertiliser company to be listed on Bursa Malaysia. Partnering with HLIB will help us solidify our market position as an established fertiliser manufacturer in Malaysia,” said Cropmate managing director Lee Chin Yok.

According to Lee, the funds raised will be used to support Cropmate’s working capital requirements in tandem with the group’s production activities as the business grows, particularly in the specialty fertiliser segment, to meet the needs of orchard operators, especially within the growing durian market.

“These resources will also support upgrades to our production facilities and the establishment of a research and development laboratory to enhance innovation,” he said

“The funds will play a pivotal role in helping us expand our manufacturing capabilities, ensuring that we can continue to supply the market with high-quality fertilisers and maintain our establishment in the agricultural sector,” Lee added.

HLIB has been appointed as the principal adviser, sponsor, underwriter, and bookrunner for the IPO exercise.

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