Investors show overwhelming support for Cropmate Berhad IPO
- Cropmate Berhad announced its IPO, offering 260 million shares with significant interest from the market.
- The IPO received 21,392 applications for over 3.1 billion shares, resulting in an oversubscription rate of 84.88 times.
- The strong investor demand showcases confidence in Cropmate's management and strategic vision for future growth.
On November 27, 2024, Cropmate Berhad, a Malaysian company specializing in conventional and specialty fertilizer manufacturing, announced that its initial public offering (IPO) had received an extraordinary response from investors, indicating strong market confidence in the company's strategic direction. In total, 260 million ordinary shares were offered, which included a public issue of 210 million new shares and an offer for sale of 50 million shares. The allocation strategy specifically targeted institutional investors and the Malaysian public, including Bumiputera allocations approved by the Ministry of Investment, Trade and Industry. The company received a staggering 21,392 applications, amounting to requests for over 3.1 billion shares, leading to an oversubscription rate of 84.88 times overall. Each segment showed significant interest: the Bumiputera portion received 10,745 applications for about 1.37 billion shares (73.19 times oversubscription), while the general public submitted 10,647 applications for approximately 1.8 billion shares (96.57 times oversubscription). Moreover, the shares reserved for eligible persons were fully subscribed, further underscoring the demand for Cropmate's offering. Cropmate’s Managing Director, Mr. Lee Chin Yok, emphasized the overwhelming support from investors as a testament to the trust placed in the company’s management and future business ventures. He explained that this response enables Cropmate to enhance its operations and customer service capabilities in order to meet the rising demand for fertilizers in the agricultural sector. Additionally, Ms. Lee Jim Leng, Group Managing Director/Chief Executive Officer of Hong Leong Investment Bank Berhad, noted that the strong demand reflects the investment community's recognition of Cropmate's solid management and prospects. The company is set to debut on the ACE Market of Bursa Securities on December 5, 2024, marking a significant milestone in its growth strategy as it aspires to make a meaningful impact within the agricultural sector. Supported by a team of industry veterans, Cropmate is committed to aiding local farmers in enhancing both crop yield and quality through innovative products and solutions.