99 Speed Mart Launches US$532 Million IPO, Malaysia's Largest in 7 Years

Malaysia's top mini-market chain retailer 99 Speed Mart Retail Holdings on Thursday (Aug 15) launched an initial public offering (IPO) that would raise 2.36 billion ringgit (US$532 million), the country's biggest IPO in seven years.

The company is offering up to 1.43 billion shares priced at 1.65 ringgit apiece, according to its prospectus released Thursday, confirming an earlier report by Reuters on the listing.

This includes 660 million ringgit to be raised through the issuance of 400 million new shares, the firm said. Its shares are due to begin trading on Sep 9.

Upon listing, 99 Speed Mart is expected to have a market capitalisation of 13.9 billion ringgit, making it Malaysia's largest

IPO since 2017. The country's IPO market is one of Southeast Asia's strongest performers this year, raising up to US$674 million so far, almost 15 per cent higher compared with the same period a year ago, LSEG data showed.

99 Speed Mart, founded by entrepreneur Lee Thiam Wah in 1987 as a traditional sundry store, plans to use more than half of its listing proceeds for expanding its network of outlets, while 15.2 per cent have been earmarked for establishing new distribution centres, the company said.

The rest of the proceeds will be used for purchasing delivery trucks, upgrades, as well as listing expenses and repaying bank borrowings. The company operates over 2,600 mini-market stores throughout Malaysia.

It has secured 14 cornerstone investors for the market debut, including Malaysian government-linked investment companies and asset managers, whose support covers 55 per cent of the IPO deal size, the firm said.

CIMB Investment Bank Berhad is the principal adviser, sole bookrunner and managing underwriter, as well as joint underwriter for the exercise, while Affin Hwang Investment Bank Berhad and RHB Investment Bank Berhad are the other joint underwriters.