KUALA LUMPUR: 99 Speed Mart Retail Holdings Bhd has signed a retail underwriting agreement with three investment banks in conjunction with its upcoming initial public offering (IPO) on the Main Market of Bursa Malaysia.
It is due to be listed in the third quarter of 2024.
The agreement was signed with CIMB Investment Bank Bhd, Affin Hwang Investment Bank Bhd, and RHB Investment Bank Bhd.
In a statement today, the company said the IPO entails up to 1.4 billion ordinary shares comprising an offer for sale of 1 billion ordinary shares and a public issue of 400 million new shares.
The public issue shares represents 2.5 per cent of the enlarged issued shares capital where 168 million will be made available for application by the Malaysian public via balloting, of which 84 million will be made available to bumiputra investors.
Additionally, 42 million shares will be reserved for the directors, employees, and persons who have contributed to the success of 99 Holdings.
The offer for sale portion that represents 14.5 per cent of the enlarged issued shares capital comprising 1.05 bilion shares to Bumiputera investors approved by Ministry of Investment, Trade and Industry of Malaysia (Miti) and 168 million for Malaysian institutional and selected investors.
99 Holdings is primarily engaged in the retailing of daily necessities, predominantly fast-moving consumer goods, through its extensive network of mini-market outlets across Malaysia where it currently boasts over 2,600 outlets nationwide.
Its founder and chief executive officer Lee Thiam Wah said that tapping into the capital markets can accelerate the company's expansion plan and continue scaling the store network to expand footprint in Malaysia.
"This will further solidify our position as the largest mini-market chain retailer in Malaysia, enhancing our brand recognition in the region. It will also drive consumer engagement and enable the public to participate in the company's growth," he added.
CIMB I is the principal adviser, sole bookrunner, sole managing underwriter, and joint underwriter.
Meanwhile Affin Hwang and RHB are the joint underwriters for the IPO.