Cropmate Bhd has signed an underwriting agreement with Hong Leong Investment Bank Bhd (HLIB) for its upcoming IPO on the ACE Market of Bursa Malaysia Securities Bhd (Bursa Securities).
Cropmate Managing Director Lee Chin Yok said the IPO exercise marks a key milestone in the company’s journey as it is the first pure-play fertiliser company to be listed on Bursa Malaysia.
“The funds raised will be used to fund our working capital requirements in tandem with our production activities as our business grows, particularly under our speciality fertiliser segment to meet the needs of orchard operators, especially within the growing durian market.
“These resources will also support upgrades to our production facilities and the establishment of a research and development laboratory to enhance innovation,” Lee said, adding that the funds play a pivotal role in its manufacturing capabilities expansion which ensures the continuous supply of high-quality fertilisers to the market and maintaining its establishment in the agricultural sector.
Cropmate’s IPO exercise will involve the public issuance of 210 million new ordinary shares, representing 28.4% of the enlarged issued share capital, and an offer for sale of 50 million existing shares, representing 6.8% of the enlarged issued share capital of 738 million ordinary shares.
“Of the approximately 208.34 million new ordinary shares, 92.25 million shares are reserved for Bumiputera investors approved by the Investment, Trade and Industry Ministry and the remaining 116.09 million shares are for other institutional and selected investors.
“As for the retail offering of 51.66 million ordinary shares, 36.9 million shares are open for application by the Malaysian public via balloting while the balance of 14.76 million ordinary shares is reserved for application by eligible directors, eligible employees and persons who have contributed to the success of the company,” Cropmate said in a statement.
HLIB will act as the principal advisor, sponsor, underwriter and bookrunner for the IPO exercise and will underwrite the entire 51.66 million IPO shares offered under the retail offering of the IPO.
