CONVENIENCE store chain operator 99 Speed Mart Retail Holdings Bhd (99 Holdings) launched its prospectus today ahead of its planned listing on the Main Market of Bursa Malaysia on September 9, 2024.

The IPO, the largest in Malaysia in seven years, involves the sale of 1.028 billion existing shares and the issuance of 400 million new shares at RM1.65 each, aiming to raise RM660 million, with a projected market capitalization of RM13.9 billion.

The IPO is backed by 14 cornerstone investors, including government-linked companies, covering 55% of the deal size.

Proceeds from the IPO will be used primarily to expand the company’s network of outlets (58.9%), establish new distribution centers (15.2%), purchase delivery trucks (8.3%), upgrade existing outlets (7.2%), and repay bank loans (6.8%).

With over 2,600 mini-markets nationwide, 99 Holdings serves approximately 1.1 million customers daily.

The company plans to use the IPO funds to further enhance its operations and brand.

CIMB Investment Bank is leading the IPO, with Affin Hwang and RHB Investment Bank also involved.

The company has a dividend policy targeting a 50% payout ratio.

Public subscriptions for the IPO are open until August 23, 2024. — TMR