KUALA LUMPUR (Sept 4): Malaysia's sovereign wealth fund Khazanah Nasional Bhd has ceased to be a substantial shareholder of Farm Fresh Bhd (KL:FFB) after disposing of 65 million shares, trimming its stake in the Johor-based dairy producer from 6.49% to 3.02%.

According to Farm Fresh’s filing with Bursa Malaysia on Thursday, the disposal was made via Khazanah’s wholly-owned unit Agrifood Resources Holdings Sdn Bhd. The company did not disclose details of the transaction price.

Khazanah first invested in Farm Fresh in 2011, many years before its listing in 2022, acquiring a 30% stake in the company then known as The Holstein Milk Company Sdn Bhd through Agrifood Resources, as part of its push to strengthen Malaysia’s food security and dairy self-sufficiency agenda.

Farm Fresh’s 2022 initial public offering (IPO) was among the year’s largest, raising approximately RM1 billion at an issue price of RM1.35 per share, which valued the group at RM2.5 billion upon listing.

Since Farm Fresh’s listing, Khazanah has steadily pared down its stake through open-market disposals. In 2025 alone, Khazanah sold 42.5 million shares in June, cutting its stake from 11.8% to 9.42%, before disposing of another 55 million shares in July.

The latest disposal now places Khazanah’s shareholding at just 3.02%, lower than the 5% threshold required to be deemed a substantial shareholder.

Farm Fresh’s major shareholder is its group managing director and group chief executive officer Loi Tuan Ee who, through his family’s private vehicle Rainforest Capital Sdn Bhd and Farmchoice Foods Sdn Bhd, holds a 28.99% and 11.14% equity interest in the company respectively.

Other institutional shareholders include Abrdn Malaysia Sdn Bhd, with a 10.97% stake, and the Employees Provident Fund (EPF), with a 9.69% stake, according to Bloomberg data.

Shares of Farm Fresh have gained more than 10% year to date, with the counter closing three sen or 1.46% lower to RM2.02 on Thursday. This valued the company at RM3.69 billion.