High Investor Demand Reflects Confidence in Cropmate's Strategic Vision
KUALA LUMPUR, Nov 27, 2024 - (ACN Newswire) - Cropmate Berhad (“Cropmate” or the “Company”), a key player in the conventional and specialty fertiliser manufacturing industry in Malaysia, is pleased to announce that its Initial Public Offering (IPO) for the Malaysian public has been oversubscribed by 84.88 times, indicating strong investor interest in Cropmate’s growth trajectory and prospects.
Managing Director of Cropmate Berhad, Mr. Lee Chin Yok
Cropmate’s IPO of 260.00 million ordinary shares (“IPO Shares”) consists of a Public Issue of 210.00 million new ordinary shares (“Issue Shares”) and an Offer for Sale of 50.00 million shares (“Offer Shares”) involving:
(I) Institutional offering of 208.34 million IPO Shares in the following manner:
158.34 million Issue Shares allocated via private placement to institutional and selected investors, including 42.25 million Issue Shares approved for Bumiputera investors by the Ministry of Investment, Trade and Industry (“MITI”); and
50.00 million Offer Shares allocated via private placement for Bumiputera investors by the MITI.
(II) Retail offering of 51.66 million IPO Shares in the following manner:
36.90 million Issue Shares made available for application by the Malaysian public via balloting, with an equal allocation between Bumiputera and non-Bumiputera investors; and
14.76 million Issue Shares reserved for application by the eligible directors of the Company, employees of Cropmate and its subsidiary (“Group”) and persons who have contributed to the success of the Group (“Eligible Persons”).
The Group received a total of 21,392 applications for 3,169,052,100 Issue Shares with a value of approximately RM633.81 million were received from the Malaysian public, which represents an overall oversubscription rate of 84.88 times. For the Bumiputera portion, a total of 10,745 applications for 1,368,843,700 Issue Shares were received, which represents an oversubscription rate of 73.19 times. For the public portion, a total of 10,647 applications for 1,800,208,400 Issue Shares were received, which represents an oversubscription rate of 96.57 times.
The 14.76 million Issue Shares made available for application by the Eligible Persons were fully subscribed.
Under the Institutional Offering of 208.34 million of IPO Shares, the Bookrunner has confirmed that it has received interests to subscribe the 158.34 million Issue Shares allocated via private placement to institutional and selected investors, including 42.25 million Issue Shares for Bumiputera investors by the MITI, as well as 50.00 million Offer Shares allocated via private placement for Bumiputera investors by the MITI.
Managing Director of Cropmate Berhad, Mr. Lee Chin Yok, expressed, “The robust response to our IPO reflects the trust that investors have placed in Cropmate’s business and strategic direction. We are grateful for this overwhelming support and excited to move forward with our plans to enhance our operations and customer service capability to meet the growing demand for our fertilisers.”
Mr Lee also added, “The enthusiastic response from investors underscores their belief in Cropmate’s future potential. This support motivates us to strengthen our operations and continue innovating to meet the evolving needs of the agriculture industry.”
Group Managing Director/Chief Executive Officer of Hong Leong Investment Bank Berhad (“HLIB”), Ms. Lee Jim Leng, remarked, “The strong demand for Cropmate’s IPO is a testament to the investment community’s recognition of the Company’s solid management team and their prospects. Cropmate is well-positioned to make a meaningful impact in the agricultural sector, and we are honoured to support them in their journey.”
Cropmate Berhad is scheduled to make its debut on the ACE Market of Bursa Securities on 5 December 2024.
About Cropmate Berhad (“Cropmate”)
Founded in 2018, Cropmate Berhad is an established fertiliser manufacturer and supplier in Malaysia, specialising in the formulation and blending of conventional and specialty fertilisers. With a focus on innovation and sustainability, Cropmate offers a wide range of products designed to enhance agricultural productivity, including compacted and blended fertilisers, as well as semi-organic, organic, and liquid fertilisers. Led by industry veterans with decades of experience, Cropmate is committed to supporting farmers in improving crop yield and quality. As the first pure-play fertiliser company listed on Bursa Malaysia, Cropmate continues to advance its mission of contributing to the growth and sustainability of the agricultural sector.
