99 Speed Mart opens 12% higher on Main Market

PETALING JAYA: Malaysia’s largest home-grown mini-market chain retailer 99 Speed Mart Retail Holdings Bhd made its debut on the Main Market today, opening at RM1.85 sen per share, 12.12% up from its initial public offering (IPO) price of RM1.65.

Listed under the retailers sub-sector of Bursa Malaysia’s consumer products and services sector, the convenience store operator raised RM2.36bil through its IPO.

The IPO included the public issuance of 400 million new shares, raising RM660mil for the company.

Additionally, the offering involved 1.03 billion existing shares sold by the founding shareholders, bringing the total offering size to RM2.36bil.

Founded by entrepreneur Lee Thiam Wah in 1987 as a traditional sundry store, 99 Speed Mart plans to use 58.9% of the funds raised from the public issuance to expand its network of outlets.

The group intends to open about 250 new outlets annually, with a target to reach a total of about 3,000 outlets operating nationwide by the end of 2025.

With the slogan “Near N’ Save,” the company currently operates over 2,600 mini-market stores throughout Malaysia.

Additionally, 15.2% of the funds have been earmarked for establishing new distribution centres, according to the company.

The remaining proceeds will be used for purchasing delivery trucks, upgrading facilities, covering listing expenses, and repaying bank borrowings.

For the second quarter ended June 30, 2024 (2Q24), 99 Speed Mart saw its revenue increase by 8.2% to RM2.42bil from RM2.24bil in 2Q23, owing to contributions from its outlet expansion.

During 2Q24, the group added 59 outlets, bringing the group’s total outlet count to 2,646 as at June 30, 2024.

Additionally, its new bulk sales e-commerce platform introduced to the Klang Valley in December 2023 has contributed an incremental revenue to the group.

Net profit for the quarter under review rose 66.3% to RM125.5mil from RM75.5 in 2Q23 due to higher promotional discounts and prompt payment discounts for the goods purchased.