The blockbuster IPO listing is real and it will hit the Bursa exchange on 9.9 (2024) as expected ~ sync with it's name mah 😁. This will be the biggest initial public offering (IPO) in Malaysia in 7 years.
Founded by Mr. Lee Thiam Wah (click here to view his brief profile), 99 Speed Mart is a well-known chain of mini-market stores in Malaysia with 2,651 outlets nationwide, with 19 distribution centres across 9 states.
Currently, the company has garnered an estimated market share of 40.1%, effectively being labelled as the largest mini-market player in Malaysia.
It offers a wide range of products, including groceries, household items, snacks, beverages, and personal care products. The stores are typically small, designed to provide quick and easy access to essential goods for local communities.
Here’s what you can expect when visiting a typical 99 Speed Mart:
- Layout: The store is usually compact with aisles that allow for efficient movement. Items are neatly organized on shelves, making it easy to find what you need.
- Product Range: They offer a diverse range of product portfolio through their outlets with approximately 3,300 SKUs on average across approximately 50 product categories comprising food and beverages, personal and baby care products as well as household products
- Pricing: 99 Speed Mart is known for its competitive prices. It's popular among Malaysians for providing value-for-money products.
- Accessibility: With the tagline of “Near n’ Save”, these outlets are strategically located in residential neighbourhoods, letting consumers the convenient for quick stops.
Next, let's jump straight into the key details take from the IPO prospectus below:
- Public issue of 400 million new ordinary shares at RM1.65, raising RM660 million
- Price-to-earnings multiple of 34.7x based on our EPS of 4.76 sen derived from PAT of RM400.2 million for the FYE 2023 upon listing
- Expected market capitalisation = RM13.9 billion
- Backed by 14 cornerstone investors, covering 55% of the IPO deal size
- Targeted dividend payout ratio of 50%
The future plans and strategies:
- aim to open new outlets and reach a target total of approximately 3,000 outlets operating nationwide by the end of 2025
- anticipate to operate at least 25 distribution centres (from current 19) by end 2027
- selective opportunistic expansion into international markets
- enhance bulk sales capabilities through our e-commerce-driven business model ~ www.99bulksales.my
Source: IPO prospectus
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