Farm Fresh, the "next big listing"

Farm Fresh, the "next big listing"

The initial public offering (IPO) by Farm Fresh, which controls 18 per cent of the local ready-to-drink market, entails 743 million new and existing shares.

KUALA LUMPUR: Khazanah Nasional Bhd-backed Farm Fresh Bhd is due to make its debut on Bursa Malaysia's Main Market by March in what is billed as the country's next big listing.

The initial public offering (IPO) by Farm Fresh, which controls 18 per cent of the local ready-to-drink market, entails 743 million new and existing shares.

The IPO reportedly is estimated to raise about RM2 billion to the company and its major shareholders.

Last Friday, Bloomberg, citing sources, reported that Farm Fresh had attracted nearly 30 cornerstone investors, including Aberdeen Standard Investments and AIA Group Ltd, for the IPO.

It also reported that Farm Fresh's IPO was set to be the country's biggest since last June, when CTOS Digital Bhd, which runs a credit reporting agency, and its shareholders raised RM1.21 billion.

Farm Fresh yesterday signed an underwriting agreement with a group of local and foreign banks in conjuction with the listing.

The 743.2 million IPO shares comprise an institutional offering of up to 687.4 million shares and a retail offering of 55.7 million issue shares.

The 687.4 million institutional shares represent 37 per cent of Farm Fresh's enlarged issued share capital.

It is offering 167.2 million shares and up to 65.0 million shares to Bumiputera investors approved by the International Trade and Industry Ministry.

A total of 455.2 million offer shares are for Malaysian institutional and selected investors (other than approved Bumiputera investors) and foreign institutional and selected investors outside the United States.

The retail offering entails 55.7 million issue shares, representing about 3.0 per cent of Farm Fresh's enlarged issued share capital.

This involves 18.6 million issue shares reserved for application by eligible directors, employees and persons who contributed to the company's success and 37.2 million issue shares reserved for application by the public.

Farm Fresh group managing director and group chief executive officer Loi Tuan Ee said it had grown into one of the nation's leading dairy producers despite stiff competition from other brands in the span of 12 years.

"This underwriting ceremony takes us one step closer to our proposed debut on the main market of Bursa," he said.

The local banks involved in the IPO are CIMB Investment Bank Bhd, Maybank Investment Bank Bhd, Affin Hwang Investment Bank Bhd, AmInvestment Bank Bhd, Hong Leong Investment Bank Bhd and RHB Investment Bank Bhd.

CIMB IB chief executive officer (CEO) Jefferi Hashim said Farm Fresh's combination of innovative products and business model had proven its resilience in a challenging economic environment and was poised for further growth as the economy recovers.

Jefferi said Farm Fresh's journey was truly a homegrown success story, backed by a strong and experienced local management team.

Maybank IB CEO Datuk Fad'l Mohamed said as one of the largest integrated dairy players in Malaysia, Farm Fresh was well poised for the next stage of growth, as it enlarged its footprint in the domestic and regional consumer space with its strong branding."

CIMB IB is the sole principal adviser, joint global coordinator, joint bookrunner, joint managing underwriter and joint underwriter for the IPO.

Maybank IB is the joint global coordinator, joint bookrunner, joint managing underwriter and joint underwriter.

Credit Suisse is participating as the joint global coordinator and joint bookrunner for the listing.

Affin Hwang IB, AmInvestment, Hong Leong IB and RHB IB are the joint underwriters.

https://www.nst.com.my/business/2022/02/771803/farm-fresh-next-big-listing