99 Speed Mart Retail Holdings Berhad launched its initial public offering prospectus in conjunction with the company's upcoming listing on the Main Market of Bursa Malaysia Securities Berhad.

Upon listing, the supermarket chain will be the largest IPO in Malaysia since 2017 by market capitalisation and IPO deal size where participants will include 14 cornerstone investors including Malaysian government-linked investment companies and asset managers, whose support covers 55% of the IPO deal size.

The IPO exercise involves an offer for sale of 1,028.0 million existing ordinary shares and is expected to raise approximately RM660.0 million through the public issue of 400.0 million new ordinary shares at RM1.65 each per share. 99 Holdings has earmarked more than half of its public issue, or 58.9% of the proceeds for the expansion of its network of outlets and 15.2% for the establishment of new distribution centres. 8.3% and 7.2% have been budgeted for purchasing delivery trucks and upgrading existing outlets respectively. Another 6.8% has been allocated for the repayment of bank borrowings, while the remaining proceeds shall be utilised for expenses related to the listing.

Based on the enlarged issued share capital of 8,400.0 million shares and IPO price of RM1.65 per share, the expected market capitalisation is RM13.9 billion, anticipated to be Malaysia's largest IPO since 2017. The company said it has a dividend policy which targets a dividend payout ratio of approximately 50.0% of its profit after taxation attributable to its shareholders.

CIMB Investment Bank Berhad is the Principal Adviser, Sole Bookrunner, Sole Managing Underwriter, and Joint Underwriter for this IPO exercise, while Affin Hwang Investment Bank Berhad and RHB Investment Bank Berhad are the other Joint Underwriters for this IPO exercise.

The public issue portion of the IPO will be made available for subscription from today and application will close at 5.00p.m. on 23 August, 2024.