MAIN Market-listed information technology (IT) software and platform provider ARB Bhd has obtained approval from its shareholders to embark on a fundraising exercise to harness hydroponics internet of things (IoT) solutions.
At the company’s extraordinary general meeting (EGM) held on Dec 24, 98.2% of ARB’s shareholders voted in favour of its proposed renounceable rights issue of up to 1.075 billion new ordinary shares on the basis of one rights share for every one existing share held.
“The majority of proceeds raised will be utilised for the venture into the provision of customised hydroponics IoT systems and solutions for the agriculture industry,” commented ARB’s executive director Datuk Seri Larry Liew Kok Leong.
Hydroponic farming is a modern technique involving usage of 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.
“Hydroponic is an efficient farming technique that promotes rapid growth, higher yield and better quality of crops,” Liew pointed out. “With an established track record and expertise in IoT solutions, we intend to apply key features of our existing IoT technologies into our hydroponics IoT solutions.”
For context, 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.”
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. ARB said such 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.
A BI Intelligence survey expects IoT’s devices adoption in the agriculture industry to reach 75 million in 2020, growing 20% annually.
At the same time, the global smart agriculture market size is expected to triple by 2025, reaching US$15.3 bil (compared to being slightly over US$5 bil back in 2016).
At 4.25pm, ARB was down 0.5 sen or 3.23% to 15 sen with 2.87 million shares traded, thus valuing the company at RM91 mil. – Dec 28, 2021
https://focusmalaysia.my/arb-to-utilise-rights-issue-proceeds-to-fund-hydroponic-iot-venture/
