99 Speed Mart Retail Holdings Bhd, has taken a significant step towards its ambitious expansion plans by filing a draft prospectus for an initial public offering (IPO) on the Main Market of Bursa Malaysia. The move is part of the company’s strategy to grow its footprint to a staggering 3,000 stores nationwide.
The Securities Commission Malaysia (SC) has revealed that the IPO comprises both institutional and retail offerings, totaling up to 1.43 billion IPO shares. This represents up to 17 percent of its enlarged issued shares.
The institutional offering involves up to 1.22 billion IPO shares, with proceeds raised intended for various expansion initiatives.
These include the establishment of new outlets across Malaysia, the setup of new distribution centers (DCs), acquisition of delivery trucks, and the enhancement of existing outlets.
In a statement, 99 Speed Mart emphasiSed its commitment to solidifying its position as the leading mini-market chain retailer in Malaysia.
The company outlined that the expenditure requirements associated with the IPO proceeds are aimed at bolstering its outlet network, upgrading equipment within existing outlets, and investing in logistics capabilities to support its growing product range efficiently.
With aspirations to open approximately 250 new outlets annually, 99 Speed Mart has set a target of achieving 3,000 stores nationwide by the close of 2025.
Notably, the company plans to distribute these outlets strategically, with 600 new outlets slated for Peninsular Malaysia and 150 for East Malaysia between 2025 and 2027.
CIMB Investment Bank Bhd has been appointed as the principal adviser and underwriter for the IPO, signaling strong market support for 99 Speed Mart’s expansion endeavors.
