KUALA LUMPUR (March 21): Farmiera Bhd, which is in the poultry farming and poultry processing business, is seeking to list on the ACE Market to raise funds for its capital expenditure and expansion.

The company filed its initial public offering (IPO) draft prospectus with Bursa Malaysia on Friday.

The IPO will involve a public issue of 117 million new shares, with no offer for sale of shares. The listing would offer investors a 26% stake in the company at an undisclosed price.

Established in 2003, the Klang-based company primarily produces broilers and processes raw poultry products. Its customers span from livestock distributors and traders as well as retail chains such as grocery stores, hypermarkets, supermarkets and food services providers.

For its financial year ended Dec 31, 2023, the company made a net profit of RM6.44 million on the back of RM535.85 million in revenue. Gross profit margin was 2.78% while profit before tax margin stood at 1.88%.

Under the proposed public issue, the company will set aside 22.5 million shares for the public and nine million shares for eligible persons. Meanwhile, 85.5 million shares will be allocated to selected investors via private placement.

Proceeds from the public issue have been earmarked for the construction of three parent stock farms located in Negeri Sembilan and Pahang, coupled with a hatchery farm. The remaining funds will be used for working capital and listing expenses.

“As part of our expansion plan, we intend to venture into the upstream sector of the poultry industry, by specifically engaging in broiler breeding and hatchery operations, to supply broiler DOCs (one-day-old chicks) to our poultry farming operations,” it said.

Malacca Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.