KUALA LUMPUR: ARB Bhd, a provider of information technology (IT) products and platforms, has received shareholder approval for a rights issue of up to 1.07 billion new shares on the basis of one rights share for every existing share.

Executive director Datuk Sri Larry Liew Kok Leong said the majority of the proceeds raised will be utilised for the venture into the provision of customised hydroponics Internet of Things (IoT) systems and solutions for the agriculture industry.

"ARB has an established track record and expertise in IoT solutions. 

"Therefore, we intend to encompass the key features of existing IoT technologies into the hydroponics IoT solutions," he said in a statement today.

At the company's extraordinary general meeting (EGM) held on 24 December 2021, 98.2 per cent of ARB shareholders who voted gave the green light for the right issue exercise.

Hydroponic farming is a modern technique involving using water to replace soil to grow plants.

Hydroponic systems can be established on various scales, with the large-scale covering acres of land to grow crops for commercial purposes.

Features such as sensors, which are connected to the internet, can be installed in trays filled with water and nutrient solutions to monitor temperature, moisture, lighting, humidity and the pH of the water built within the system.

Larry said IoT solutions are set to transform the agriculture industry.

The specialised equipment, wireless connectivity, software, and IT services can help to ensure optimum application of resources to achieve high yields, improve crop quality, and reduce operational costs.

Smart farming is highly efficient when compared with the conventional approach.

The company said this opportunity arises due to the demand for food from the exponential growth of the world population, shrinking agricultural lands and depletion of finite natural resources.

According to BI Intelligence survey, it is expected that IoT devices' adoption in the agriculture industry will reach 75 million in 2020, growing 20 per cent annually.

At the same time, the global smart agriculture market size is expected to triple by 2025, reaching US$15.3 billion as compared to being slightly over US$5 billion back in 2016.

https://www.nst.com.my/business/2021/12/758387/arb-shareholders-approve-rights-issue