Malaysia’s 99 Speed Mart launches $702.9 million IPO, country’s biggest in seven years
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New share sales in Malaysia have raised US$740 million (S$975 million) so far in 2024, eclipsing the US$663 million raised in all of 2023.
PHOTO: THE BUSINESS TIMES
KUALA LUMPUR – Malaysian convenience store chain 99 Speed Mart Retail Holdings has launched a RM2.36 billion (S$702.9 million) listing, in what would be the country’s biggest debut in seven years.
The deal is set to further boost Malaysia’s initial public offering (IPO) market, where listings so far in 2024 have raised more money than they did in all of 2023.
The debut is offering up to 1.43 billion shares at RM1.65 apiece, according to its prospectus dated Aug 15.
99 Speed Mart said it will list its shares on Sept 9 and plans to use the proceeds to expand its outlets and pay off debt. Mr Lee Thiam Wah, the company’s founder and chief executive, and his wife and company director Ng Lee Tieng, will sell up to 72 per cent of shares on offer, while the company will be raising up to RM660 million in new shares.
Founded in 1987 as a single sundry store in the state of Selangor, 99 Speed Mart has more than 2,600 outlets, according to its prospectus.
It posted a profit after tax of RM133.2 million on revenue of RM2.4 billion for the first three months of 2024.
The company also operates an online platform offering bulk purchases for retail and enterprise customers, and has incorporated trading companies in China for product procurement.
It briefly entered the Singapore market in 2019, but exited within a year due to the Covid-19 pandemic.
New share sales in Malaysia have raised US$740 million (S$975 million) so far in 2024, eclipsing the US$663 million raised in all of 2023, according to data compiled by Bloomberg. 99 Speed Mart’s listing would be the biggest since petrochemical producer Lotte Chemical Titan Holding’s US$849 million offering in 2017.
The IPOs in 2024 have included palm oil producer Johor Plantations Group, which at US$156 million was the largest debut in the country since 2022, and Alpha IVF Group’s US$98 million listing.
Others on tap include South Korea-based OCI Holdings, which is considering listing its Malaysian polysilicon unit on the Kuala Lumpur stock exchange to raise as much as US$320 million, Bloomberg News has reported.
The South-east Asian nation’s market regulator, along with stock exchange operator Bursa Malaysia, said earlier in 2024 that it has committed to a three-month approval period for IPO applications received from March 1.
The process typically took as long as six months to complete previously.
Malaysia has rekindled favour with global investors after years of lacklustre growth and policy confusion due to a rapid turnover in leadership.
The country’s push in artificial intelligence (AI) has also made it a key bet on AI-related services in the region. BLOOMBERG
