Farm Fresh Bhd made its first appearance on Bursa Malaysia with an outstanding performance in active trading, where it jumped 51 sen or 37.78% to RM1.86 with an initial public offering (IPO) price of RM1.35.
The counter opened 35 sen or 25.93% at RM1.70, then rose 47 sen or 34.81% at RM1.82 and gave the company a capitalization value of RM3.38 billion.
It is also the most actively traded counter with 218.67 million shares traded.
For your information, Farm Fresh shares are the largest IPO in Malaysia since June 2021.
In a virtual press conference held in conjunction with the company's listing, Loi Tuan Ee, who is the company's managing director and chief executive officer stated that they would adjust prices in the event of supply disruptions due to the Russo-Ukrainian war that made commodity prices soar.
According to Loi, Farm Fresh has adjusted its milk price in September due to the increase in commodity prices which has burdened the company.
In addition, the company’s financial performance for the financial year ended 31 March 2023 (FY23) will be decisive to product launches and business expansion planned for to enter Singapore, Hong Kong, Indonesia and the Philippines.
Terang Loi further explained that they are providing the production capacity of the plant in Larkin to meet market demand in Singapore, working to get the required halal certification for the Indonesian market and comply with the rules required to penetrate the Hong Kong market by the end of this year.
It is common knowledge that the Farm Fresh IPO will generate RM301 million, of which 140 million will be used to create new manufacturing hubs, new dairy farms and integrated facilities in Malaysia.
Then, RM60 million will be allocated to expand product production in Australia, RM40 million for regional expansion in Malaysia, RM40.8 million for working capital and RM20.2 million for listing expenses.
