Synergy House to raise RM34m from IPO

CROSS-BORDER e-commerce seller and furniture exporter Synergy House Bhd is set to raise RM34.5 million through an IPO on the Bursa Malaysia ACE Market on June 1, 2023. 

The IPO will issue 130 million new shares at an IPO price of 43 sen per share, with proceeds to be used for purchasing inventories (29.07%), e-commerce fulfilment centres (4.36%), advertising and promotion (2.91%), repayment of borrowings (29.07%), working capital (22.38%) and listing expenses (12.21%). 

In a recent statement, Synergy House ED Tan Eu Tah noted that the IPO will enable the company to fuel its future growth and expansion plans by tapping into the equity capital market and provide financial flexibility to pursue growth opportunities. 

Its ED Teh Yee Luen said the company intends to expand its business-to-consumer (B2C) segment by purchasing inventories and carrying out advertising and promotion initiatives on third-party e-commerce platforms. 

“We intend to continue to grow our B2C segment by utilising a portion of the IPO proceeds to purchase inventories for our B2C segment and by carrying out advertising and promotion initiatives on third-party e-commerce platforms. 

“We also plan to grow our B2C sales through expanding to more e-commerce platforms in new markets,” he added. For the financial years ended Dec 31 2019 (FY19), FY20, FY21 and FY22, the group registered revenue of RM111.5 million, RM122.9 million, RM184.3 million and RM194.1 million, respectively.

In particular, the group has seen encouraging growth from its B2C segment whereby its B2C sales have increased from RM1.99 million in FY19 to RM49.63 million in FY22 at a compound annual growth rate of 192.17%. 

Kenanga Investment Bank Bhd is the principal advisor, sponsor, underwriter and placement agent for the IPO exercise. — TMR / pic Synergy House FB


  • This article first appeared in The Malaysian Reserve weekly print edition