KUALA LUMPUR: 99 Speed Mart Retail Holdings Bhd made its debut on the Main Market of Bursa Malaysia today at RM1.85 a share, representing a 12.1% or 20 sen premium above its initial public offering (IPO) price of RM1.65, with an opening volume of 53.8 million shares.
99 Speed Mart’s listing is the largest IPO in Malaysia in the past seven years, raising a total of RM2.36 billion.
The public issuance of 400 million new shares raised up to RM660 million, with the group allocating 59% to expand its network of outlets, 15% to establish a distribution centre, 8.3% to purchase delivery trucks and 7.2% to upgrade existing outlets.
The retail chain’s alternate director, Albert Lee Hiang Wan, confirmed that 99 Speedmart aims to open about 250 outlets annually, in line with its past expansion strategies.
“This year, we are on track to meet our expansion goals. Our priority remains growing our retail footprint and improving our operations. We have just opened our southern region expansion two months ago and are monitoring the market’s response carefully,” he said in a press conference after the listing ceremony.
Lee highlighted the company’s strong financial standing, particularly in the light of the successful IPO.
“We are in a net cash position, and our focus is not on leveraging that but rather on how we best utilise the funds raised during this listing exercise. Our goal is to strengthen our operational resilience and drive more robust business growth,” he said.
Meanwhile, 99 Speed Mart has entered the e-commerce space with its bulk sales initiative, which allows customers to purchase goods in larger quantities through its online platform.
Lee said the initiative has shown promising early results.
“We’ve seen positive feedback from the market since the soft launch in the third quarter last year. The bulk sales platform shares the same logistics backbone as our physical stores, which makes it an efficient extension of our existing operations.”
Looking ahead, Lee said the company is not limiting its growth to specific regions within Malaysia. “While we have identified key regions for expansion, such as the north and the East Coast, we are not neglecting growth opportunities in the central and southern regions, as well as East Malaysia.”
When asked about future international expansion, Lee said they are open to opportunities in Southeast Asia and beyond. “As for now, our primary focus is to ensure our domestic operations remain strong and resilient, and then look at how we can grab opportunities in Southeast Asia and beyond.”
