Tag: Cropmate Berhad

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

IPO to Enhance Operations and Customer Service Capability in Malaysia’s Fertiliser Industry

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

Cropmate Berhad Signs Underwriting Agreement with Hong Leong Investment Bank

Cropmate Berhad (“Cropmate” or the “Company”), one of the key players in the fertiliser industry in Malaysia, is pleased to announce that it has signed an underwriting agreement with Hong Leong Investment Bank Berhad (“HLIB”) for its upcoming initial public offering (“IPO”) on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”).

Mr. Lee Cheng Seng, Executive Director of Cropmate Berhad; Mr. Lee Chin Yok, Managing Director of Cropmate Berhad; Ms. Lee Jim Leng,Group Managing Director/Chief Executive Officer of Hong Leong Investment Bank Berhad; Mr. Lee Cheng Fei, Executive Director of Cropmate Berhad[L-R]
Mr. Lee Cheng Seng, Executive Director of Cropmate Berhad; Mr. Lee Chin Yok, Managing Director of Cropmate Berhad; Ms. Lee Jim Leng,Group Managing Director/Chief Executive Officer of Hong Leong Investment Bank Berhad; Mr. Lee Cheng Fei, Executive Director of Cropmate Berhad[L-R]

The IPO exercise, as outlined in the Company’s draft prospectus, will involve the public issue of 210.0 million new ordinary shares in Cropmate, representing 28.4% of the enlarged issued share capital, with offer for sale of 50.0 million existing shares, representing 6.8% of the enlarged issued share capital of 738.0 million ordinary shares.

The allocation of the IPO shares will be offered as follows: –

1. Institutional offering of approximately 208.34 million IPO Shares, representing 28.2% of the enlarged issued share capital:

a. 92.25 million IPO shares reserved for Bumiputera investors approved by the Ministry of Investment, Trade and Industry (“MITI”), including 42.25 million new ordinary shares and 50.00 million existing shares;

b. 116.09 million IPO shares allocated to other institutional and selected investors.

2. Retail offering of 51.66 million IPO shares, representing 7.0% of the enlarged issued share capital:

a. 36.90 million IPO shares for application by the Malaysian public via balloting, equally allocated between Bumiputera (representing 2.5% of the enlarged issued share capital) and non-Bumiputera (representing 2.5% of the enlarged issued share capital) investors.

b. 14.76 million IPO shares reserved for application by eligible directors, eligible employees, and persons who have contributed to the success of the Company.

HLIB will act as the Principal Adviser, Sponsor, Underwriter, and Bookrunner, and will underwrite the entire 51.66 million IPO shares offered under the retail offering of the IPO.

Managing Director of Cropmate Berhad, Mr. Lee Chin Yok, commented, “This IPO marks a key milestone in Cropmate’s journey, as we are the first-ever pure-play fertiliser company to be listed on Bursa Malaysia. Partnering with HLIB will help us solidify our market position as an established fertiliser manufacturer in Malaysia. The funds raised will be used to fund our working capital requirements in tandem with our production activities as our business grow, particularly under our specialty 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.”

He also added, “The funds will play a pivotal role in helping us expand our manufacturing capabilities, ensuring that we can continue to supply the market with high-quality fertilisers and maintain our establishment in the agricultural sector.”

Group Managing Director/Chief Executive Officer of HLIB, Ms. Lee Jim Leng said: “We are pleased to have played a key role in Cropmate Berhad’s IPO journey. We strongly believe that Cropmate’s listing status will, without doubt, boost its branding and company profile amongst the plantation and orchard owners both in Malaysia and in the region. We are confident that this listing will be a significant step forward for the Company.

The listing of Cropmate on Bursa Securities will also provide a robust platform for the company to embark on its next phase of growth and aligns its long-term vision to solidify its position in fertiliser industry.

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