KUALA LUMPUR (Nov 12): Farmiera Bhd (KL:FAMIERA) ended its first day on the ACE Market slightly higher after the poultry firm’s lacklustre debut on Wednesday.
Farmiera opened at 25 sen, unchanged versus its initial public offering (IPO) price of 25 sen per share. After dipping to an intraday low of 23 sen, the counter recovered to close half a sen or 2% higher at 25.5 sen, as buying interest picked up near the end of the trading session.
More than 56 million of its shares changed hands, making it the third most active stock on Bursa Malaysia.
The IPO raised RM29.25 million from a public issue of new shares that represents 26% of the enlarged share capital, which was oversubscribed by nearly 17 times by retail investors. No existing shares were offered, meaning that its shareholders were not cashing out through the IPO.
The opening trade valued Farmiera at RM112.5 million, making it one of the smallest poultry firms listed on Bursa in terms of market capitalisation.
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.
Steady demand
Farmiera is optimistic about the poultry sector’s long-term prospects, supported by steady consumer demand and its essential role in Malaysia’s food supply chain, chief financial officer Chin Chien Hwi said at the listing ceremony on Wednesday.
“Poultry is still the cheapest and most affordable source of protein in the market," he said, adding that consumption will also get a boost from tourist arrivals with the Visit Malaysia Year 2026 campaign.
Farmiera plans to allocate RM22.15 million or 76% of the IPO proceeds to develop two parent stock farms and a hatchery, which will eventually supply 40% of its poultry farming requirements.
The parent stock farm is scheduled for completion in the second quarter of 2026, with the supporting hatchery expected to be operational by the first half of 2027. At present, Farmiera sources all its day-old chicks from third-party suppliers.
Chin said the expansion would reduce reliance on third-party suppliers for day-old chicks, allowing greater control over input costs and supply consistency.
The company has also set aside RM2.8 million, or a little under 10%, for working capital, with the remainder earmarked to defray listing expenses.
Malacca Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO.