Tentative Date(s):

• Opening of application - 15 November 2024
• Closing of application - 22 November 2024
• Balloting of applications - 27 November 2024
• Allotment of IPO shares to successful applicants - 04 December 2024
• Tentative listing date - 05 December 2024

Company Background

The company was incorporated in Malaysia under the Act on 11 September 2023 as a public limited company under the name of Cropmate Berhad. Subsequently on 27 September 2024, they completed the Acquisition of Cropmate Fertilizer which resulted in Cropmate Fertilizer becoming their wholly-owned subsidiary. The company is principally an investment holding company. Through its Subsidiary, they are principally involved in formulation and blending of conventional and specialty fertilisers as well as trading of straight fertilisers and related products.

The company group structure before and after our IPO are as follows:

Use of proceeds

1. Working capital - 40.80% (within 12 months)
2. To part finance the purchase considerations of Factory Lot 8949 and Factory Lot 8950 - 39.80% (within 12 months)
3. Capital expenditure - 7.50% (within 18 months)
4. Estimated listing expenses - 11.90% (within 2 months)

Working capital - 40.80% (within 12 months)

The company has allocated approximately RM17.1 million from the Public Issue proceeds to fund their working capital requirements, which will be utilised solely for purchase of input materials such as macronutrients and micronutrients. The estimated purchase of input materials is broken down to approximately 90% and 10% for the purchase of macronutrients and micronutrients respectively. The actual allocation depends on the operating requirements at the time of utilisation. The company Group’s working capital requirement is expected to increase in tandem with their production activities as their business grow. Therefore, while the company Group continues to generate cash inflows from their operations, the allocated proceeds from the IPO for the company Group’s working capital provide flexibility to the company Group in managing their cash flows while reducing the reliance on trade facilities.

To part finance the purchase considerations of Factory Lot 8949 and Factory Lot 8950 - 39.80% (within 12 months)

The company has allocated approximately RM16.7 million from the Public Issue proceeds to part finance the Proposed Acquisition of Factory Lot 8949 and Proposed Acquisition of Factory Lot 8950:

Capital expenditure - 7.50% (within 18 months)

The company has allocated approximately RM3.2 million from the Public Issue proceeds to purchase the following new vehicles and equipment as well as setting up of a R&D and test laboratory to enhance their operations and customer service capability. The estimated capital expenditure is summarised as follows:

Any excess amount required for the above capital expenditure will be funded by internally generated funds and/or bank borrowings. Conversely, if the actual amount for the above capital expenditure is lower than budgeted, the excess will be used for working capital purposes to purchase input materials.

Business Model

The company business model is as follows:

Click here to continue the IPO - Cropmate Berhad (Part 2)

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