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Farm Price Inks Underwriting Agreement With Alliance Bank For ACE Market IPO

KUALA LUMPUR: Johor-based Farm Price Holdings Bhd (FPH), a wholesaler and distributor of fresh vegetables, signed an underwriting agreement with Alliance Islamic Bank Bhd (AIS) for its upcoming initial public offering (IPO) on the ACE market of Bursa Malaysia.

Signing the underwriting agreement. (From left): Farm Price Holdings Bhd executive director Shirley Liew Tsuey Er, managing director Dr Lawrence Tiong Lee Chian, Alliance Islamic Bank Bhd chief executive officer Rizal IL-Ehzan Fadil Azim and senior vice president, head of corporate finance Tee Kok Wah.

FPH managing director Dr Tiong Lee Chian said signing this underwriting agreement with AIS brings the company closer to its upcoming listing on the ACE market of Bursa Malaysia.
“This unlocks greater resources and flexibility to fuel our expansion plans and explore new avenues for growth.
“We firmly believe that the fresh vegetable industry is crucial to Malaysia’s food security, supporting public health, sustenance, and affordability.
“As a wholesale distributor, we play a key role in the supply chain. We source fresh vegetables from domestic and foreign growers, distributors, and importers, providing us with a range of vegetables to meet the fresh vegetable requirements of our customers, mainly in Johor and Singapore.
“Having started this business with my spouse and business partner, Liew Tsuey Er, twenty years ago, we have built a solid track record in the industry. Today, Farm Price offers a vast selection of fresh vegetables to meet the diverse needs of our customers. In addition to variety, we also provide value-added services such as processing prepacked and fresh-cut vegetables to enhance convenience and reduce preparation time for our customers,” Tiong said in a statement.
FPH’s IPO exercise encompasses the public issuance of 102.00 million shares, representing 22.67 per cent of its enlarged share capital, and the offer for sale of 33.00 million existing shares, or 7.33 per cent of its enlarged share capital, via private placement to selected investors.
Out of the 102.00 million shares, 22.50 million shares will be made available to the Malaysian public via balloting, 11.25 million shares to its eligible Directors, employees and persons who have contributed to the success of FPH (pink form allocations), while the remaining 68.25 million shares will go towards private placements to selected investors.
Under the underwriting agreement, AIS will underwrite 33.75 million new shares made available to the Malaysian public and pink form allocations.
FPH, via its subsidiaries, wholesales and distributes fresh vegetables, food and beverage (F&B) products, and other groceries.
The company also operates a retail store in Ulu Tiram, Johor, where it directly sells fresh vegetables, F&B products, and other groceries to end-consumers.
The wholesale distribution segment was the largest revenue contributor to FPH.
Currently, the Senai Centralised Distribution Centre, coupled with the cold chain infrastructure of refrigerated trucks and cold room facilities, enables the Group to deliver fresh vegetables efficiently and promptly to meet the customers’ needs, mainly in the state of Johor in Malaysia and Singapore.
Additionally, the company maintains six other regional distribution centres in Johor, Selangor, Perak, and Penang, which focus on the wholesale distribution of F&B products and other groceries.
FPH’s processing and packing operations in its Senai Centralised Distribution Centre are ISO 9001, good manufacturing practice (GMP), and hazard analysis and critical control points (HACCP) certified, ensuring stringent quality control measures.
At the same facility, it has also obtained Halal certification for prepacked and fresh-cut vegetables, assuring product integrity and opening doors to broader market reach.
“Recognising the essential nature of this industry, FPH is committed to long-term growth. As part of our strategies, we plan to construct additional facilities to expand our Senai Centralised Distribution Centre, which is expected to double the size of our current facilities.
“We will also establish additional regional distribution centres with cold room facilities in Nilai, Negeri Sembilan and Cameron Highlands, Pahang, and set up a sales and marketing office in Singapore.
“These initiatives will allow us to expand our operational facilities and market coverage for business growth,” Tiong said.
FPH is scheduled to be listed on the ACE market of Bursa Malaysia by May 2024, with AIS as the principal adviser, sponsor, sole underwriter and placement agent for the IPO exercise.

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