Malaysia, 09/09/2024 (Asia News Channels) - 99 Speed Mart Retail Holdings Bhd, Malaysia's largest home-grown mini-market chain, has raised RM 2.36 billion in its initial public offering (IPO) on the Kuala Lumpur Stock Exchange. This marks the country's largest IPO in seven years and elevates founder Lee Thiam Wah's net worth to approximately RM14 billion.
The company's shares opened at RM1.85 per share, a 12% increase from the IPO price of RM1.65, and rose as much as 15% on the first day of trading. The listing attracted significant interest, including 14 cornerstone investors such as abrdn Asia Ltd. and UOB Asset Management Malaysia.
Lee Thiam Wah, 60, began his entrepreneurial journey selling snacks from a roadside stall in Klang after contracting polio as a child, which resulted in the loss of use of his legs. "I have to help myself," he once stated, highlighting the challenges he faced due to his physical limitations.
Founded in 1987 as a single grocery shop, 99 Speed Mart now operates over 2,600 outlets nationwide, holding a 40% market share in the mini-market segment and nearly 12% among all grocery retailers in Malaysia. The company's slogan, "Near n’ Save," emphasizes its focus on convenience and accessibility.
Proceeds from the IPO will fund the opening of approximately 250 new outlets annually, aiming for a total of about 3,000 stores by the end of 2025. Additional funds are allocated for new distribution centers, delivery trucks, facility upgrades, and debt repayment.
The successful IPO comes as the FTSE Bursa Malaysia KLCI Index is on track for its best year since 2010, signaling renewed investor confidence in the nation's economic growth. Analysts note that the scale of 99 Speed Mart's operations presents a significant barrier to entry for competitors, solidifying its position in the retail sector.
Lee will continue to serve as the company's CEO, guiding its expansion and reinforcing its market presence.
--ASIA NEWS CHANNELS