KUALA LUMPUR (Aug 29): 99 Speed Mart Retail Holdings Bhd (KL:99SMART), which is set to list on the Main Market on Sept 9, announced that its initial public offering (IPO) has been oversubscribed by 3.04 times.

In a statement, the group said it received 49,354 applications for 678.6 million shares from the Malaysian public, compared to the 210 million shares made available for the retail offering.

Under the Bumiputera portion, there were 3,731 applications for 45.37 million shares, representing a subscription rate of 0.54 times, with the balance clawed back and re-allocated to non-Bumiputera investors.

For the non-Bumiputera portion, a total of 45,623 applications for 633.21 million shares were received, representing an oversubscription rate of 6.54 times.

Meanwhile, the 42 million shares allocated to eligible persons were fully subscribed.

Additionally, the institutional offering to institutional and selected investors, through bookbuilding, has been fully placed out.

The proposed IPO involves the issuance of 1.03 billion existing shares and a public issue of 400 million new shares. Of these, 1.22 billion shares are allocated to Malaysian institutional and selected investors, while the remaining 210 million shares are offered to retail investors.

With an IPO price of RM1.65 per share, 99 Speed Mart would have a market capitalisation of RM13.86 billion based on an enlarged issued share capital of 8.4 billion shares upon listing. This marks Malaysia's largest IPO in seven years.

99 Speed Mart's IPO aims to raise RM2.36 billion, including RM1.7 billion from the sale of 1.028 billion shares by chief executive officer Lee Thiam Wah and his wife Ng Lee Tieng.

The public issue is expected to raise up to RM660 million, and nearly 59% of the proceeds have been earmarked for the expansion of its network of outlets, 15% for setting up new distribution centres, 8.3% for the purchase of delivery trucks, and 7.2% for upgrading existing outlets.

CIMB Investment Bank is the IPO’s principal adviser, sole bookrunner, sole managing underwriter, and joint underwriter. Affin Hwang Investment Bank and RHB Investment Bank are joint underwriters.