At the start of trading, the counter saw 7.67 million shares changing hands.
On May 3, the Johor-based vegetable wholesaler and distributor reported that its shares were oversubscribed by 91.35 times.
The group aims to raise RM24.48 million through its IPO exercise.
Of this sum, RM6.4 million or 26.14% will be used to construct additional operational and related facilities at the Senai Centralised Distribution Centre, while RM2 million or 8.17% has been earmarked for the purchase of machinery, equipment and logistics fleet.
Additionally, RM1.6 million or 6.54% has been allocated for planned regional distribution and procurement centres while RM10.58 million or 43.22% is dedicated to working capital, with the remaining RM3.9 million or 15.93% to cover listing expenses.
Managing director Tiong Lee Chian said plans to expand the Senai Centralised Distribution Centre comes with an additional built-up area of 84,790 sq ft, notably increasing cold room capacity from 29,669 pallets to 40,000 pallets annually on completion.
“It also expands our value-added processing areas to capitalise on the growing demand for pre-packed and fresh-cut vegetables, which boast higher margins.
“We would like to focus on the development of the market in Singapore and want to set up a marketing and sales base there because we are expecting more sales, supported by the upcoming Johor-Singapore Special Economic Zone.
“For the first quarter of this year, the Singapore market contributed 28% to our total revenue,” he told the media at a press conference after the listing ceremony.
With the additional space, Tiong said Farm Price will be investing in new machinery and equipment to cater for an anticipated rise in customers’ orders, reduce labour use and expand its transportation fleet to cater for growth and expansion.
Farm Price is also setting up additional regional distribution centres in Nilai, Negeri Sembilan and Cameron Highlands, Pahang.
“The company recognises the significant growth potential within the fresh vegetable industry, where our market share remains under 1% in both Malaysia and Singapore.
“To capitalise on the rising demand for fresh produce, we are committed to ensuring seamless service throughout our Senai Centralised Distribution Centre’s expansion,” he said.