Agricore’s IPO attracts RM669.21mil public interest

PETALING JAYA: Agricore CS Holdings Bhd’s public offering (IPO) has attracted RM669.21mil in public interest, following just RM5.07mil worth of its public portion shares on sale.

In a statement, the food ingredients supplier said 10.14 million new shares made available to the Malaysian public via balloting was oversubscribed by 130.99 times, after a total of 15,304 applications for 1.134 billion new shares were received.

The Bumiputera public portion of shares was oversubscribed by 113.57 times, after a total of 8,594 applications for 580.88 million new shares received.

For the non-Bumiputera public portion, a total of 6,710 applications for 757.54 million new shares were received, which represents an oversubscription rate of 148.42 times.

Meanwhile, the 10.14 million new shares for its eligible directors, employees and persons who have contributed to the success of Agricore Group have also been fully subscribed.

In addition, its placement agent has confirmed that 31.43 million shares made available for application by way of private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry and selected investors have been fully placed out.

In the same statement, Agricore managing director Oon Boon Khong said with the IPO funds in place, the company is on track to implement its expansion plans and capitalise on the growth opportunities in the food ingredients industry.

“The IPO proceeds are crucial for us to increase our inventory levels to support our business growth.

“Through higher inventory levels, the company will be able to drive its revenue growth by increasing its sales volume to the existing customers as well as securing new customers.”

With the ongoing growth and expansion of our business, Oon said the IPO proceeds will also be used to increase our storage capacity by setting up a new regional storage facility in Klang, Selangor, with an approximate built-up area of 30,000 sq ft.”