SHAH ALAM: Farmiera Bhd, a poultry producer and distributor, aims to raise RM29.25 million through its initial public offering (IPO) to fund its expansion plans.
Of the total proceeds from the IPO, 42.9% and 32.8% will be allocated for the construction of parent stock farms and a hatchery, respectively.
Farmiera managing director and CEO Hong How Seng said the company’s expansion plans include the construction of three parent stock farms comprising 12 breeder houses, with four in Pahang and eight in Negeri Sembilan, to produce fertile eggs for its hatchery operations.
The group will also build a 36,000 sq ft hatchery in Mahsan, Negeri Sembilan, equipped with 12 incubators and designed to handle an annual capacity of 22.6 million eggs.
“The upstream move into broiler breeding and hatchery segments will enable Farmiera to secure its own day-old chick supply, exercise greater cost control and ensure consistent product quality throughout its vertically integrated supply chain. We are confident that these strategic initiatives will position Farmiera for sustainable growth and deliver enduring value to our stakeholders,” he said at the prospectus launch today.
To support the company’s growth and upstream vertical expansion, 9.6% of the proceeds will be earmarked for working capital, while the remaining balance will be used to cover listing-related expenses.
Hong said that since its establishment in 2013, the group has built a strong track record of delivering a consistent and reliable supply of broiler chickens to support its live broiler trading and poultry processing businesses.
“We are now embarking on a decisive step towards upstream vertical integration, driven by our confidence that chicken meat will remain the most important and affordable source of protein amid rising demand,” he added.
The IPO entails a public issue of 117 million new ordinary shares at 25 sen per share, representing 26% of its enlarged issued share capital of 450 million shares.
For FY2024, Farmiera recorded revenue of RM561.1 million and net profit of RM7 million, up from RM535.8 million and RM6.4 million respectively in FY2023.
Farmiera manages 15 self-operated farms and 44 contract farms across Peninsular Malaysia, supported by two processing facilities in Lukut and Ipoh with a combined daily capacity of 45,000 broilers.
The group’s operations are halal-certified by the Department of Islamic Development Malaysia (Jakim) and MeSTI-certified by the Health Ministry, and the counter is syariah-compliant.
Malacca Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.
Malacca Securities managing director Lim Chia Wei said Farmiera has established a solid presence in the poultry industry, backed by strong farming standards and a clear focus on operational excellence.
“Its move into broiler breeding and hatchery business segments reflects a forward-looking strategy for sustainable expansion, and we are confident in the management team’s ability to capture opportunities and drive future success,” he said.
Farmiera is scheduled to be listed on the ACE Market of Bursa Malaysia Securities on Nov 12.
