Background

Cropmate Berhad (Cropmate) is primarily involved in the formulation and blending of conventional and specialty fertilisers as well as trading of straight fertilisers and related products. Its operations are based in Klang, Selangor. The facilities feature four blending-compacting production lines: three dedicated to producing compacted and semi-organic fertilisers, and one focused on manufacturing blended and organic fertilisers.

IPO Statistic

The IPO entails a public issue of 260,000,000 new ordinary shares and an offer for sale of 50,000,000 shares at an IPO price of RM0.20/share.

Public issue:

• 36,900,000 new shares for application by the Malaysian public.

• 14,760,000 new shares for application by Eligible Persons.

• 208,340,000 new shares by way of a private placement to selected investors.

Main Competitive Advantages

1. Offers both conventional and specialty fertilisers to meet diverse customer needs.

2. Offers a product range that supports all stages of plant development.

3. Experienced directors and management team.

4. In-house technical expertise to develop formulations to meet various requirements of its customers and target markets.

5. Large customer base from diversified sectors.

Valuation

Based on an IPO price of RM0.20 per share, Cropmate is valued at a PER of 14.7x FY23 EPS. We assign a valuation of RM0.21/share for Cropmate, based on a PER of 11.6x its CY25 EPS, in line with the weighted average PER of comparable companies within the relative sector. Not Rated.

Source: TA Research - 21 Nov 2024