THE Singapore Exchange may welcome a new entrant soon.
A dragon fruit producer in Malaysia is aiming for an initial public offering (IPO) on the local bourse's Catalist board.
In a phone interview on Friday, the vice-president of Golden Farm Development Pte Ltd, Wong Lay Chew, told The Business Times that information pertaining to the listing, such as pricing, proceeds to be raised and launch date of the IPO, will be released after a signing ceremony on Nov 25.
On Friday, Golden Farm issued a press statement announcing that it will be signing a Memorandum of Understanding (MOU) for "IPO and fund raising signing ceremony" with SAC Capital.
Asked about this unusual move, Mr Wong said the signing of the MOU is to formalise the preparation for the listing. BT understands that SAC Capital is acting as the sponsor for the proposed listing.
"Proceeds raised from the IPO will be used to expand our main dragon fruit business by building more plantations through purchasing new land or existing plantations," Mr Wong said.
Besides Malaysia, the company is distributing its products to Singapore, Hong Kong and China, where profits are "all showing", Mr Wong said. Business in Singapore has contributed more than S$200,000 a month to the bottom line, or about S$2.4 million a year, he added.
Currently, Golden Farm, which was established in 2012, only has plantations in Malaysia. About 90 per cent of the plantations are in Johor while the rest are in areas like Malacca and Tampin.
The company has also gone into products like a dragon fruit enzyme drink, which it says has detoxification effects.