Cropmate Sets to Raise RM42.0 Million from ACE Market IPO

Source link : https://news7.asia/news/cropmate-sets-to-raise-rm42-0-million-from-ace-market-ipo/

KUALA LUMPUR, Nov 15, 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 the launch of its prospectus for the upcoming initial public offering (“IPO”) on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”).

Ms. Lee Jim Leng, Group Managing Director and Chief Executive Officer of Hong Leong Investment Bank Berhad; Mr. Lee Chin Yok, Managing Director, Cropmate Berhad

The IPO aims to raise RM42.0 million through the issuance of 210.0 million new shares at a retail price of RM0.20 per share. The proceeds from the IPO will be allocated as follows:

RM17.1 million for working capital to support Cropmate’s growing operations. RM16.7 million to part finance the purchase considerations of Factory Lot 8949 and Factory Lot 8950 where Cropmate’s operations are located. RM3.2 million for capital expenditure including setting up of a Research and Development (“R&D”) and test laboratory. RM5.0 million to defray listing expenses.

Managing Director of Cropmate, Mr. Lee Chin Yok, stated, “This is a defining moment for Cropmate with the launch of our prospectus. As the first-ever pure-play fertiliser company to be listed on Bursa Malaysia, this IPO represents our commitment to enhancing agricultural productivity and sustainability in Malaysia. With the proceeds, we aim to expand our R&D capabilities and continue to innovate in the fertiliser industry. We are excited about the opportunities this IPO opens for Cropmate as we strengthen our presence in the Malaysian agricultural sector.”

He further added, “Our focus on expanding our R&D capabilities and securing strategic assets aligns with our long-term vision of becoming a leading force in the industry. The additional working capital will also provide us the necessary resources to meet the rising demand for high-quality fertilisers, especially amongst the durian orchards and oil palm plantations, while ensuring continuous innovation and excellence in our operations.”

Group Managing Director/Chief Executive Officer of HLIB, Ms. Lee Jim Leng, expressed her support, stating, “Cropmate is well-positioned to capture the growth in Malaysia’s agricultural sector, especially with its focus on innovation and sustainability, which allows them to play a pivotal role in strengthening food security as our population continues to grow. Their strategic initiatives, backed by a strong operational foundation, ensure that Cropmate will continue to thrive and lead the fertiliser industry moving forward.”

Cropmate’s growth is anchored in its expertise in the formulation and blending of conventional and specialty fertilisers, as well as trading of straight fertilisers. The Company’s commitment to supporting farmers with innovative, high-quality fertilisers has established it as a trusted name in Malaysia’s agricultural industry.

Hong Leong Investment Bank Berhad is the Principal Adviser, Sponsor, Underwriter and Bookrunner.

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.

For more information, visit https://www.cropmate.com.my/

Issued By: Swan Consultancy Sdn. Bhd. on behalf of Cropmate Berhad

For more information, please contact:
Jazzmin Wan
Email: j.wan@swanconsultancy.biz

William Yeo
Email: w.yeo@swanconsultancy.biz

Topic: Press release summary

Source: Cropmate Berhad

Sectors: Exchanges & Software, Daily Finance

http://www.acnnewswire.com

From the Asia Corporate News Network

Source : ACN Newswire

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Author : News7

Publish date : 2024-11-22 08:42:04

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