KUALA LUMPUR (Aug 15): 99 Speed Mart Retail Holdings Bhd, en route to the Main Market, said on Thursday there is still room to grow its number of outlets, especially in northern and eastern regions of Peninsular Malaysia, as well as in Sabah and Sarawak.

The company will also add more outlets to meet demand in densely populated cities, such as Kuala Lumpur, where there could be up to 20,000 people in a kilometre radius, alternate director Albert Lee told reporters following the launch of its prospectus.

“Our approach will be to strategically place outlets in areas where demand justifies it,” he said. In Kedah, where there could be 3,000 to 4,000 residents within the same radius, 99 Speed Mart’s expansion needs to be more selective, he noted.

99 Speed Mart currently operates more than 2,600 stores in Malaysia, selling everything from toilet paper to eggs, and targets to raise its number of outlets to 3,000 stores by the end of 2025.

Each of the outlets generates average monthly sales of about RM350,000, while high-performing locations could hit about RM600,000 per month.

On Thursday, the company launched an initial public offering (IPO) that would raise up to RM2.36 billion. The company will get up to RM660 million from the proceeds, of which nearly 59% has been earmarked for the expansion of its network of outlets.

The company has fewer than 10 outlets each in four states — Perlis, Terengganu, Sarawak, and Kelantan — Lee said.

“When considering future expansion, our plan involves entering Terengganu before Kelantan," he said. “Our goal is to ensure that every state is covered within our network of outlets.”