KUALA LUMPUR: Cropmate Bhd made its debut on Bursa Malaysia's ACE Market at 24.5 sen today, notching a premium of 22.5 per cent or 4.5 sen over its initial public offering (IPO) price of 20 sen.
At the opening bell, the counter saw 60 million shares changing hands.
Cropmate raised a total of RM42.0 million from the IPO, of which RM17.1 million will be allocated for working capital to support the company's operations in providing fertilisers for durian orchards and oil palm plantations, its prospectus showed.
The company will also set aside RM16.7 million to partly finance the acquisition of production assets for its factories.
The remaining funds are earmarked for capital expenditure, including the setting up of a research laboratory, and to defray listing expenses.
Cropmate independent non-executive chairman Lau Yoon Kwai said the funds raised through its IPO will enable the company to buy key production assets, finance capital expenditure and provide additional working capital.
Lau said this will enhance Cropmate's ability to serve Malaysia's agricultural sector.
"As the first pure-play fertiliser company to be listed on Bursa Malaysia, we are committed to contributing to sustainable farming practices, supporting the nation's food security goals, and delivering long-term value for all our stakeholders," he said.