KUALA LUMPUR (Nov 3): The initial public offering (IPO) of Farmiera Bhd has attracted strong investor interest ahead of the company’s ACE Market listing, with its public issue of new shares oversubscribed by 16.69 times.

The poultry producer received applications for 397.99 million shares worth approximately RM99.5 million from the Malaysian public, according to a statement from the issuing house on Monday (Nov 3).

Notices of allotment will be dispatched to successful applicants on Nov 10, with the company scheduled to list on Nov 12.

The Bumiputera public tranche was oversubscribed nearly nine times, while demand from non-Bumiputera investors exceeded available shares by close to 25 times. Shares reserved for eligible persons were also fully subscribed.

However, a private placement of new shares to approved Bumiputera investors was undersubscribed and subsequently reallocated to other investors. Separately, a private offering of existing shares was fully taken up.

Founded in 2013 and headquartered in Klang, Farmiera specialises in broiler production and raw poultry processing. Its customer base includes livestock distributors, traders and retail chains such as grocery stores, hypermarkets, supermarkets and food service providers.

The company currently operates 15 broiler farms and partners with 44 contract farms across Selangor, Negeri Sembilan, Perak, Pahang and Melaka. It also runs two halal-certified processing plants in Ipoh, Perak and Lukut, Negeri Sembilan.

Farmiera plans to allocate RM22.15 million — representing 76% of its IPO proceeds — towards the development of two parent stock farms and a hatchery, which will eventually supply 40% of its poultry farming needs.

The parent stock farm is slated for completion in 2Q2026, with the hatchery expected to be operational by the first half of 2027. Currently, the company sources all day-old chicks from third-party suppliers.

At its IPO price, Farmiera will debut with a market capitalisation of RM112.5 million, equivalent to 16 times its trailing 12-month earnings. For the financial year ended Dec 31, 2024, the company posted a profit after tax of RM7 million on revenue of RM561.07 million.

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