99 Speed Mart Launches Malaysia's Largest IPO in Seven Years to Raise RM2.3 Billion
Malaysian convenience-store chain 99 Speed Mart Retail Holdings Bhd has announced its plans to raise RM660 million through a public issue of 400 million new ordinary shares, ahead of its listing on Bursa Malaysia’s Main Market on September 9, 2024. The IPO, priced at RM1.65 per share, is expected to be Malaysia's largest in seven years, targeting a total of 2.36 billion ringgit ($532 million) and potentially elevating the company’s market capitalization to RM13.9 billion.
The proceeds from the IPO will be primarily allocated to expanding 99 Speed Mart's network of outlets (58.9%) and establishing new distribution centers (15.2%). Additionally, 8.3% will be used to purchase delivery trucks, and RM47.6 million will be directed towards upgrading existing outlets and procuring energy-efficient equipment. The remaining RM23.4 million will cover listing expenses. This move is set to boost Malaysia's IPO market, which has seen a surge in activity and investor confidence this year.
Founder and CEO Lee Thiam Wah, along with Ng Lee Tieng, will sell up to 72% of the shares on offer. The public issue portion of the IPO is available for subscription until August 23, 2024. This listing follows the largest IPO since Lotte Chemical Titan Holding Bhd’s RM3.77 billion offering in 2017 and is indicative of the positive economic outlook and investment sentiment in Malaysia.
