I'd say it's because Asia is where there is the greatest demand. The products are to increase crop yields.
From the prospectus: "the Asia Region is the largest crop production market, representing 60% of crop production (by value) in 2018...China accounted for 58% of crop production and over 50% of the area harvested." The prospectus puts Oceania at 1% of the crop production market. It makes sense to be targeting the Asia region over Australia.
That said, one of the Jan 2022 investor presentation's notes states that exclusive manufacturing and distribution licenses are in place for the Australian market - if this means one manufacturer / distributor has the exclusive rights to distribute RLF products in the Australian market, it could be a limiting factor for potential expansion in the Australian market.
In any case, given RLF has set up manufacturing operations in China and China is a key market, I think their focus is right. The main proposed use of the IPO funds over the course of the next 2 years is sales and marketing, as well as increasing manufacturing and packing, and the carbon credits side to a lesser extent. RLF is already profitable in its market of choice, and focusing efforts on increased sales should see profitability increase with demand increases.
Then we have all of the macro factors making this an important sector at the moment. Shortage of fertilisers given Russia/Ukraine, China itself banning the export of fertilisers so that it is kept in country, a drive for more environmentally friendly and sustainable crop growth technologies and a continuing focus on food security in a growing population. I think RLF is a good pick.
