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KUALA LUMPUR: 99 Speed Mart Retail Holdings Bhd (99 Holdings) which plans to list on the Main Market of Bursa Malaysia Securities on September 9, 2024 will be the biggest initial public offering the country has seen in seven years. The IPO exercise entails an offer for sale of 1.028 billion existing ordinary shares, and a public issue of 400 million new ordinary shares at RM1.65 each per share, to raise RM660 million. Based on the enlarged issued share capital of 8.4 million shares and IPO price of RM1.65 per share, the expected market capitalisation would be RM13.9 billion. The IPO is backed by 14 cornerstone investors including Malaysian government-linked investment companies and asset managers, whose support covers 55 per cent of the IPO deal size. 99 Holdings has earmarked 58.9 per cent of the RM660 million proceeds from the public issue for the expansion of its network of outlets and 15.2 per cent for the establishment of new distribution centres. 8.3 per cent and 7.2 per cent were budgeted for purchasing delivery trucks and upgrading existing outlets respectively. Another 6.8 per cent was allocated for the repayment of bank borrowings, while the remaining proceeds shall be used for expenses related to the listing. 99 Holdings' founder and chief executive officer Lee Thiam Wah said the company have established a strong foundation with its extensive network of mini-markets, serving about 1.1 million customers daily nationwide based on the sales transactions recorded in the financial year ended 2023. 'This IPO will provide us with the necessary funds to further expand our outreach and enhance our operations.'We are excited to embark on the next phase of our corporate journey, further strengthening ourbrand recognition and our tagline of 'Near n' Save', emphasising convenience and easy access for our customers, saving them time and money,' he said. CIMB Investment Bank Bhd is the principal adviser, sole bookrunner, sole managing underwriter, and joint underwriter for this IPO exercise, while Affin Hwang Investment Bank Bhd and RHB Investment Bank Bhd are the other joint underwriters for this IPO exercise. The company operates the 99 Speedmart mini-market stores, with over 2,600 outlets nationwide. 99 Holdings has a dividend policy which targets a dividend payout ratio of approximately 50.0 per cent of its profit after taxation attributable to its shareholders. The public issue portion of the IPO will be made available for subscription from today and application will close at 5pm on August 23. Source: Business time

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KUALA LUMPUR (Aug 14): Johor-based property developer Paragon Globe Bhd (KL:PGLOBE) said it has entered into a deal to undertake its first serviced apartment project in Johor Bahru, with an estimated gross development value (GDV) of RM1.49 billion. The group expects to realise a profit of about RM334.45 million from the project, which will consist of four towers, each comprising 36 floors with 2,552 serviced apartments. The expected gross development cost is about RM1.15 billion, Paragon Globe said in a statement on Wednesday. The agreement grants PGB Desa Heights the right to develop two prime freehold land parcels totalling 7.13 acres (28,844 square metres) in Johor Bahru's Danga Bay waterfront development. In exchange, PGB Desa Heights will pay Tropicana Danga Bay RM102.46 million, which represents 10% of the project’s estimated net development value. The project is set to commence in February 2025 and be completed within four years. According to Paragon Globe, the funding for the proposed development is expected to be financed via internally-generated funds or bank borrowings. As of end-March, the group had total borrowings of RM141.58 million, while its cash and bank balances stood at RM25.39 million. Paragon Globe slipped into the red for the financial year ended March 31, 2024 (FY2024) after two consecutive years of profitability. The group recorded a net loss of RM1.24 million in FY2024, compared to a net profit of RM3.95 million the previous year, due to higher costs and a lower fair value gain on other investments and investment properties. The group has been actively acquiring land of late, including two parcels in Plentong, Johor for RM34.96 million from EKL Holdings Sdn Bhd. Prior to that, the group inked agreements in May and June to acquire two other Plentong plots, one measuring 9.84 acres for RM13.5 million, and another measuring 14.85 acres for RM28.56 million. Paragon Globe is controlled by its executive chairman Datuk Seri Edwin Tan Pei Seng and his brother, Datuk Seri Godwin Tan Pei Poh, who also serves as the group’s executive director. The duo hold a 51.8% stake in Paragon Globe through their private vehicle, Paragon Adventure Sdn Bhd. Shares of Paragon Globe finished 1.5 sen or 3.85% lower at 37.5 sen on Wednesday, giving it a market capitalisation of RM276.1 million. Source: Syafiqah Salim / theedgemalaysia.com