Cover 99 Speed Mart Putra Heights (Photo: Wikimedia Commons)
99 Speed Mart Putra Heights (Photo: Wikimedia Commons)
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Everyone’s favourite local convenience store, 99 Speed Mart, launches the largest IPO Malaysia has seen in nearly a decade, which could raise RM2.36 billion on its listing on the Main Market
Local minimart chain 99 Speed Mart has launched Malaysia’s largest initial public offering in seven years, priced at RM1.65 per share. 99 Speed Mart Retail Holdings Bhd has begun taking orders from both retail and institutional investors. The retail offering will close on August 23, while the institutional tranche will end on August 27.
If successful as projected, the IPO will raise the most funds on Bursa Malaysia since Lotte Chemical Titan Holding Bhd grossed RM3.77 billion in 2017.
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Above The sundry store began as Pasar Raya Hiap Hoe in 1987 (Photo: Wikimedia Commons)
The sundry store began as Pasar Raya Hiap Hoe in 1987 (Photo: Wikimedia Commons)
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What began as a humble sundry store in 1987 has evolved into one of the largest mini-market chains in the country. Founder Lee Thiam Wah did not let his physical disability stand in the way of success. Unable to walk since infancy due to polio, he left school after completing his primary education, and his construction worker father and hawker stall mother worked round the clock, leaving them with no time to care for Lee.
He started out in business selling snacks by the roadside before eventually saving enough to start a sundry shop at the age of 23, which launched his career in the retail industry. 99 Speed Mart currently operates over 2,500 stores in Malaysia, selling a range of products from toilet paper to drinks and eggs.
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Above Lee Thiam Wah, founder and CEO of 99 Speed Mart (Photo: www.99speedmart.com.my)
Lee Thiam Wah, founder and CEO of 99 Speed Mart (Photo: www.99speedmart.com.my)
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The IPO is backed by 14 cornerstone investors, including insurers AIA and Great Eastern Life Assurance, fund managers AHAM Asset Management Bhd and Areca Capital, as well as state investment companies Employees Provident Fund (EPF) and Social Security Organisation (SOCSO).
99 Speed Mart’s IPO involves an offer for sale of over 1 billion existing shares and a public issue of 400 million new shares. The institutional tranche comprises 1.22 billion shares, while 210 million shares have been allocated to retail investors. The aforementioned cornerstone investors have agreed to take up 786 million shares together, more than half of the IPO shares.
Alternate director Albert Lew said RM389 million of the proceeds will be used to expand 99 Speed Mart’s outlets, and RM100 million will be used to set up a new distribution centre. Other than that, the rest of the proceeds will be utilised to purchase delivery trucks, upgrade existing outlets, procure energy-efficient equipment, and more.
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