Agroz Inc targets USD 10M IPO to expand vertical farming in Malaysia

MALAYSIA – Agroz Inc, a leading name in Malaysia’s agricultural technology sector, is gearing up to raise USD 10 million through an initial public offering (IPO) on the Nasdaq.

This move highlights the company’s ambitions to expand its innovative vertical farming operations and meet the rising demand for sustainable food production.

The Petaling Jaya-based firm filed its IPO prospectus with the U.S. Securities and Exchange Commission (SEC) last Thursday.

Agroz plans to offer 2.5 million shares priced at USD 4 each, which would value the company at $95 million. Tiger Brokers will act as the sole bookrunner for this deal.

“We believe this IPO is a significant milestone in our journey to transform urban agriculture and bring sustainable solutions to food production,” said a company representative.

Agroz, founded in 2020, has rapidly grown into a fully integrated agricultural technology company. Over the past year, it reported USD 5 million in revenue for the 12 months ending June 30, 2024.

The company specializes in designing, building, managing, and operating controlled environment agriculture (CEA) vertical farms, which allow crops to be grown in stacked layers within indoor spaces.

The concept of vertical farming is gaining traction in Malaysia due to the pressing challenges posed by traditional agriculture.

Land scarcity, climate variability, and the increasing demand for food from urban populations have driven interest in this modern farming method.

“Vertical farming not only reduces the need for expansive farmland but also minimizes water usage and lowers the carbon footprint,” said an industry analyst. “It’s a game-changer for urban communities, bringing fresh, locally grown produce closer to consumers while bolstering food security.”

Agroz’s operations extend beyond farming. The company also educates communities about how vegetables are grown and works to raise awareness about sustainable agriculture practices.

Its revenue streams come from designing and constructing vertical farms, operating them, selling fresh produce, and offering related services.

Malaysia has seen a surge in the adoption of vertical farming, driven by both private sector investments and government initiatives aimed at fostering sustainable agricultural practices. This aligns with the global push for eco-friendly solutions in food production.

Vertical farming provides numerous benefits, including reducing dependency on external food sources and addressing urban food accessibility challenges.

By situating farms closer to urban centers, companies like Agroz can ensure fresher produce reaches consumers more efficiently.

With its planned IPO, Agroz aims to strengthen its position in the agricultural technology sector while contributing to Malaysia’s efforts to achieve greater food sustainability.

The funds raised will likely support the expansion of its operations and further innovation in vertical farming techniques.

As the company prepares to list under the symbol AGRZ, the Malaysian agricultural landscape appears set for a period of significant growth.

“This is not just about financial growth,” a company spokesperson emphasized. “It’s about making a tangible impact on how we produce and consume food for the future.”

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