IPO Series - CROPMATE BERHAD 农佳肥料 - 1st Bursa Fertiliser Manufacturer

Figure 1: IPO timetable of CROPMATE BERHAD
-Will be listed on the ACE Board

Info of IPO
Enlarged no. of shares upon listing: 738 million
IPO price: RM0.20
Market capitalization: RM147.60 million
Estimated funds to raise from Public Issue:  RM42.0 million
PE ratio = 14.68x (based on FY2023)
 

Figure 2: Business model of CROPMATE BERHAD
Source: CROPMATE BERHAD IPO prospectus

Figure 3: Utilisation of proceeds of CROPMATE BERHAD
Source: CROPMATE BERHAD IPO prospectus

Dividend Policy
-The group intends to distribute at least 30.0% of the group’s PAT of each financial year

Figure 5: Major customers and suppliers of CROPMATE BERHAD in FPE2024
Source: CROPMATE BERHAD IPO prospectus
 

Figure 6: Profit & Loss statement of CROPMATE BERHAD

Figure 7: Financial position of CROPMATE BERHAD

Figure 8: CROPMATE ferrtiliser brand

Source: CROPMATE BERHAD IPO prospectus

Financial overview, industry market, and personal opinion
-Referring to the financial position of the group, the total equity has increased almost 100% from FY2021 to FPE2024, meanwhile, the total liabilities do not show an increment but a reduction, from RM44.918million to RM43.149million within the same period
-The group’s business relies mainly on plantations and traders, and thus, it is closely tied with the movement of FCPO, as well as the global average prices of key fertilizers such as Nitrogen (N), Phosphorus (P), and Potassium (K).
-There are no listed companies to compare, and considering the financial performance, outlook, and industry demand, it demonstrates a neutral prospect regarding the businesses.

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By: Jshen Ng