Farm Fresh Plans RM200 Million Private Placement for Expansion

Farm Fresh Bhd is proposing a RM200 million private placement to accelerate its regional dairy expansion and increase its stake in premium ice cream brand The Inside Scoop.

The integrated dairy group plans to issue up to 109.65 million new ordinary shares, representing about 5.8% of its existing share capital, based on an illustrative issue price of RM1.824 per share. 

RM148.3 Million Set Aside for Dairy Expansion

Of the funds raised, RM148.3 million will be allocated for capital expenditure over the next 24 months.

Around RM92 million will support Farm Fresh’s expansion in Cambodia, including new processing lines and an integrated dairy farm, while another RM56.3 million will go towards expanding Malaysian manufacturing capacity and developing new products.

A further RM50 million will be used to acquire an additional 20% stake in The Inside Scoop following the exercise of a contractual put option by co-founder Edmund Tan. Farm Fresh said the placement will provide financial flexibility while preserving existing cash for operations and improving debt headroom.

The exercise is expected to dilute earnings per share due to the larger share base, but the company does not expect a material impact on current-year earnings.