Shares in 99 Speed Mart Retail Holdings Bhd opened at RM1.85 (12.1%) higher or a 20 sen premium to the initial public offering (IPO) price of RM1.65 in its first appearance on the Bursa Malaysia Main Market on Monday.
At 10.30am, the counter traded higher at RM1.90 which is up 26 sen (15.76%) valuing the mini market group at RM16.04 billion based on its issued capital of 8.4 billion shares.
The IPO of 99 Speed Mart was the largest in Malaysia in seven years with a total of RM2.36 billion including RM1.7 billion from the sale offer of 1.028 billion shares by Chief Executive Officer Lee Thiam Wah and his wife Ng Lee Tieng.
The public issue of 400 million new shares increased to RM660 million.
The group has allocated 59% of that amount to expand its branch network, 15% to establish new distribution centers, 8.3% to purchase delivery trucks and 7.2% to upgrade existing branches.
The IPO was overbought by 3.04 times.
The firm stated that 99 Speed Mart is committed to a 50% dividend payout policy supported by robust free cash flow generation with a net position.
