The shares traded as high as RM1.81, after being sold at RM1.35 each.

The company and shareholders raised about RM1 billion in an offering that lured a record 30 cornerstone investors, including Abrdn and Franklin Templeton Asset Management (Malaysia).

The company, which has a unit of sovereign wealth fund Khazanah Nasional Bhd among its investors, is reviving the IPO market in Kuala Lumpur at a time of slow activity in traditional venues due to rising interest rates and Russia’s invasion of Ukraine.

It is the third company to list on Bursa Malaysia this year and the largest since CTOS Digital Bhd more than eight months ago.

The IPO allowed “investors to have exposure in defensive or non-cyclical stocks amid prevailing market volatility with the escalating Russia-Ukraine tensions and rising interest rate atmosphere”, analysts at JF Apex Securities Bhd wrote in a note before the shares started trading.

Outstanding size

Starting out producing dairy products from 60 cows imported from Australia, Farm Fresh has expanded to a network of more than 800 home dealers and 38 regional stockists as of last year, according to its website.

It controls 18% of Malaysia’s ready-to-drink dairy market.

The company is set to get RM301 million from the sale.

It plans to use the money to build a manufacturing hub, a dairy farm and processing facility in Malaysia as well as boost production in Australia and elsewhere in Southeast Asia.

“We like Farm Fresh for its strong market presence in Malaysia’s dairy industry, local and regional expansion plans.

“The company has a dividend policy of 25%,” Ronnie Tan, an analyst at Mercury Securities Sdn Bhd, wrote in a note before the debut, giving a subscribe recommendation on the shares.

CIMB Investment Bank, Maybank Investment Bank and Credit Suisse are joint global coordinators in the IPO.