KUALA LUMPUR: Farm Price Holdings Bhd, which is set to debut on the ACE market in May 2024, has finalised an underwriting agreement with Alliance Islamic Bank Bhd (AIS).
Farm Price's IPO will involve issuing 102.00 million new ordinary shares, equivalent to 22.67 per cent of its expanded share capital, along with selling 33.00 million existing shares, or 7.33 per cent of the enlarged share capital, through private placement to selected investors. The fresh vegetables distributor said of the new shares, 22.50 million will be offered to the Malaysian public via balloting, 11.25 million to eligible directors, employees, and contributors, while the remaining 68.25 million will be privately placed.
"Under the underwriting agreement, it said AIS will underwrite 33.75 million new shares offered to the Malaysian public and Pink Form Allocations," it said.
Farm Price managing director Tiong Lee Chian said the underwriting agreement with AIS provides Farm Price with increased resources and flexibility to support the company's expansion strategies and explore opportunities for further growth.
"Recognising the essential nature of this industry, Farm Price is committed to long term growth."As part of our strategies, we plan to construct additional facilities to expand our Senai Centralised Distribution Centre, which is expected to double the size of our current facilities. "In addition, we will also establish additional regional distribution centres with cold room facilities in Nilai, Negeri Sembilan and Cameron Highlands, Pahang, and set up a sales and marketing office in Singapore.
Tiong mentioned that these measures will enable Farm Price to broaden its operational facilities and market reach to foster business expansion.
Farm Price, through its subsidiary companies, primarily engages in the wholesale and distribution of fresh vegetables, along with food and beverage (F&B) products and various groceries.
Additionally, Farm Price runs a retail outlet in Ulu Tiram, Johor, where it sells fresh vegetables, F&B items, and other groceries directly to consumers.