May 14, 2024 - Shares of Farm Price Holdings Bhd ($FPHB (0304.MY)$) surged 70% in its trading debut on Tuesday after the fresh vegetable wholesaler and distributor’s initial public offering (IPO) on the ACE Market raised RM24.48 million.
Farm Price, a company specializing in the wholesale and distribution of fresh vegetables, made a strong debut on Bursa Malaysia with its shares opening at twice their initial public offering (IPO) price of 24 sen, hitting a high of 49 sen, As of press time, the stock price reached 41 sen, with a trading volume of 1.41 billion shares. The robust investor interest was evident as the IPO was massively oversubscribed, with the public tranche receiving 91.35 times more applications than available, the Bumiputera portion 90.61 times, and the other public category 92.08 times.
The company's employee and director share scheme, in addition to a private placement for selected investors, were both fully subscribed. Farm Price operates not only in distribution but also in retail, with a store in Ulu Tiram, Johor. It boasts a network of regional distribution centers throughout Peninsular Malaysia, including a central hub in Johor that caters to both Malaysian and Singaporean markets.
The IPO raised RM24.48 million, earmarking 43% for working capital and 26% for new facility construction. Additionally, 8% was allocated for machinery, equipment, and fleet expansion, with another 7% for a new regional distribution and procurement center. Listing expenses accounted for the remaining 16% of the funds.
The offer-for-sale component of the IPO resulted in RM7.92 million for the selling shareholders, the managing director Dr. Tiong Lee Chian and his wife, executive director Liew Tsuey Er. Following its IPO, Farm Price was valued at 12.4 times its FY2023 net profit of RM8.7 million, which was earned from a revenue of RM114.2 million.
For 1QFY2024, Farm Price reported a net profit of RM2.67 million from a revenue of RM30.71 million. Without the listing expenses of RM480,000, the profit would have been RM3.02 million, with an adjusted net margin of 9.82%, higher than the 8.65% margin including listing costs.
Alliance Islamic Bank Bhd played a pivotal role in the IPO, acting as the principal adviser, sponsor, sole underwriter, and placement agent.
2024 年 5 月 14 日-Farm Price Holdings Bhd 的股票 ($FPHB (0304.MY)$）在周二的首次交易中飙升了70％，此前这家新鲜蔬菜批发商和分销商在ACE市场的首次公开募股（IPO）筹集了2448万令吉。
专门从事新鲜蔬菜批发和分销的公司Farm Price在马来西亚证券交易所首次亮相，其股票开盘价是首次公开募股（IPO）价格的两倍，即24仙的最高水平，截至发稿时，股价达到41仙，交易量为14.1亿股。随着首次公开募股被大规模超额认购，投资者的强烈兴趣显而易见，公共部分收到的申请量是现有申请的91.35倍，Bumiputera部分收到的申请量是可用申请的90.61倍，其他公开类别的92.08倍。
除了针对特定投资者的私募配售外，公司的员工和董事股票计划均已全部认购。Farm Price不仅经营分销业务，还经营零售业务，在柔佛州的乌鲁提拉姆有一家门店。它拥有遍布马来西亚半岛的区域配送中心网络，包括柔佛州的中心枢纽，可满足马来西亚和新加坡市场的需求。
此次首次公开募股筹集了2448万令吉，其中43％用于营运资金，26％用于新设施建设。此外，8％用于机械、设备和车队扩张，另外7％用于新的区域配送和采购中心。上市费用占资金的剩余16％。
首次公开募股的要约部分为出售股东、董事总经理Tiong Lee Chian博士和他的妻子、执行董事Liew Tsuey Er带来了792万令吉的收入。首次公开募股后，Farm Price的估值为其 FY2023 870万令吉净利润的12.4倍，该利润来自1.142亿令吉的收入。
在 1QFY2024 方面，Farm Price公布的净利润为267万令吉，收入为3,071万令吉。如果没有48万令吉的上市费用，利润将为302万令吉，调整后的净利润率为9.82％，高于包括上市成本在内的8.65％的利润率。
Alliance Islamic Bank Bhd在首次公开募股中发挥了关键作用，担任首席顾问、发起人、独家承销商和配售代理人。
