IPO Series - 99 SPEED MART RETAIL HOLDINGS BERHAD
Timetable of IPO
Info of IPO
Enlarged no. of shares upon listing: 8400 million
IPO price: RM1.65
Market capitalization: RM13.86 billion
Estimated funds to raise from Public Issue: RM660 million
PE ratio = 34.63x (based on FY2023)
Enlarged no. of shares upon listing: 8400 million
IPO price: RM1.65
Market capitalization: RM13.86 billion
Estimated funds to raise from Public Issue: RM660 million
PE ratio = 34.63x (based on FY2023)
Business Model
Figure 2: Business model of 99 SPEED MART
Source: 99 SPEED MART IPO prospectus
Source: 99 SPEED MART IPO prospectus
Utilisation of Proceeds
Figure 3: Utilisation of proceeds of 99 SPEED MART
Source: 99 SPEED MART IPO prospectus
Source: 99 SPEED MART IPO prospectus
Dividend Policy
-The group targets a payout ratio of approximately 50% of the PAT
-The group targets a payout ratio of approximately 50% of the PAT
Major Customers and Major Suppliers
Figure 4: Major customers and suppliers of 99 SPEED MART in FYE2023 & FPE2024
Source: 99 SPEED MART IPO prospectus
Source: 99 SPEED MART IPO prospectus
Financial Summary
Figure 5: Profit & Loss statement of 99 SPEED MART
Figure 6: Financial position of 99 SPEED MART
Financial overview, industry market, and personal opinion
-Overviewing from the revenue, it shows a sharp increase from RM7.83b to RM8.07b and jumped to RM9.21b in FY2021, FY2022, and FY2023 respectively. Projecting the FPE2024, the PE2024 would translate into approximately 26.02x, which is much lower than PE2023.
-As for a chain retailer, 99 SPEED MART has occupied the market share of more than 50%, with a record of 75.6% in 2023. By capitalising from the above benefit, the latest three years' revenue of CAGR (from FY2021 to FY2023) has recorded 10.4%, which was the highest for the financial year ended on 31 Dec 2023 in the mini-market segment.
-99 SPEED MART is the largest IPO within these 7 years and a well-known mini market, which may be supported by many institutions and retailers as the well-established fundamental of the company.
-Overviewing from the revenue, it shows a sharp increase from RM7.83b to RM8.07b and jumped to RM9.21b in FY2021, FY2022, and FY2023 respectively. Projecting the FPE2024, the PE2024 would translate into approximately 26.02x, which is much lower than PE2023.
-As for a chain retailer, 99 SPEED MART has occupied the market share of more than 50%, with a record of 75.6% in 2023. By capitalising from the above benefit, the latest three years' revenue of CAGR (from FY2021 to FY2023) has recorded 10.4%, which was the highest for the financial year ended on 31 Dec 2023 in the mini-market segment.
-99 SPEED MART is the largest IPO within these 7 years and a well-known mini market, which may be supported by many institutions and retailers as the well-established fundamental of the company.
Figure 7: 99 SPEED MART market share by revenue in 2023
Source: 99 SPEED MART IPO prospectus
Figure 8: Geographical distribution of 99 SPEED MART's outlets
Source: 99 SPEED MART IPO prospectus
Would you apply for this IPO? Share your thoughts in the comments section below
Disclaimer: The above content is not an investment advisory service and does not purport to tell or suggest which securities or stocks customers should buy or sell for themselves. It should not be assumed that the methods, techniques, or indicators presented above will be profitable or will not result in losses. You should not rely solely on the information in making any investment. Rather, you should use the information only as a starting point for doing additional independent research to allow you to form your own opinion regarding investments
The details of the IPO prospectus can be accessed through
99SMART - INITIAL PUBLIC OFFERING (" IPO") OF UP TO 1,428,000,000 ORDINARY SHARES IN 99 SPEED MART RETAIL HOLDINGS BERHAD ("99 HOLDINGS" OR "COMPANY") ("IPO SHARES") IN CONJUNCTION WITH THE LISTING OF AND QUOTATION FOR THE ENTIRE ENLARGED ISSUED ORDINARY SHARES IN 99 HOLDINGS ("SHARES") ON THE MAIN ...
99SMART - INITIAL PUBLIC OFFERING (" IPO") OF UP TO 1,428,000,000 ORDINARY SHARES IN 99 SPEED MART RETAIL HOLDINGS BERHAD ("99 HOLDINGS" OR "COMPANY") ("IPO SHARES") IN CONJUNCTION WITH THE LISTING OF AND QUOTATION FOR THE ENTIRE ENLARGED ISSUED ORDINARY SHARES IN 99 HOLDINGS ("SHARES") ON THE MAIN ...
By: Jshen Ng
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104018303 : I can't buy what information I need in Singapore
Jshen Ng OP 104018303 : Hi, for international subscription you can ask the customer service of Moomoo, they will provide you the details
Xyno Jshen Ng OP : I doubt it. I am a PR in Malaysia and Moomoo does not allow me to subscribe. If it is possible for foreigners to do so I take it as a double insult
Jshen Ng OP Xyno : If this is the case and it relates to law matter, better to have professional advice / details / consultant from any licensed advisor
Xyno Jshen Ng OP : What can be so complicated. For the law I am already considered a Malaysian. For all financial institutions in Malaysia I am a second class citizen but when it comes to taking my money I never hear a complaint.