They said this optimism comes as the retail industry’s prospects are expected to support interest in the IPO.
“We anticipate strong investor interest for the impending 99 Speed Mart IPO.
“Nevertheless, the IPO’s success will depend on the company’s ability to justify its valuation and long-term growth prospects,” said one of the analysts.
He told Bernama that factors such as gross domestic product growth, stable interest rates at 3%, and low inflation can impact investor sentiment and risk appetite.
“While the retail industry is expanding, claiming the 99 Speed Mart IPO as the largest of the year is also premature,” the analyst noted.
Based on the IPO’s prospectus on the Securities Commission’s website, the analyst said 99 Speed Mart is expected to be one of the biggest IPOs for 2024.
“Upon listing, the retailer’s enlarged number of issued shares and share capital would be 8.4 billion.
“99 Speed Mart is en route for listing on the Main Market of Bursa Malaysia this quarter,” it added.
It was reported that it would be Malaysia’s biggest IPO in seven years, since South Korea’s Lotte Chemical Titan Holdings listing in 2017, as the company is likely to raise RM2.36 billion in proceeds.
Another analyst stated that they are bullish about 99 Speed Mart’s prospects, citing its strong fundamentals.
Started as a traditional “mom and pop” sundry shop, the company now operates 2,542 outlets in most states in Malaysia and aims to open 250 new outlets annually, targeting approximately 3,000 outlets nationwide by the end of 2025.
A total of 600 new outlets will be opened in Peninsular Malaysia and 150 new outlets in East Malaysia between 2025 and 2027.
Based on an independent market research report, 99 Speedmart is the largest minimarket player and a leading grocery retailer in Malaysia, with a market share of 37.9% in 2023 and 11.1% in 2022, respectively, based on the group’s revenue for the financial year ended 2022.
The IPO of up to 1.43 billion ordinary shares for 99 Speed Mart is expected to comprise 1.03 billion existing shares (offer shares) and a public issue of 400 million new ordinary shares.