From left: SSF Home Group Bhd executive director and deputy chief executive officer Lok Kok Khong, SSF Home managing director and chief executive officer Wong Choong Loong, M & A Securities Sdn Bhd managing director Datuk Bill Tan and M & A Securities head of corporate finance Gary Ting.
KUALA LUMPUR: SSF Home Group Bhd
has signed an underwriting agreement with M & A Securities Sdn Bhd in conjunction with its initial public offering (IPO).
SSF, a homegrown furniture, home decor, and home living products retailer, is expected to be listed on the ACE Market of Bursa Malaysia by October 2023, with M&A Securities as the adviser, sponsor, underwriter and placement agent for the IPO exercise.
SSF Home’s IPO exercise involves a public issue of 200.0 million new shares, representing 25.0% of its enlarged share capital, as well as an offer for the sale of 24.0 million existing shares, representing 3.0% of the enlarged shares by way of private placement to selected investors.
Of the 200.0 million new shares, 40.0 million shares will be made available to the Malaysian public via balloting, 40.0 million shares to its eligible directors, employees, and persons who have contributed to the success of the group (pink form allocations).
Another 20.0 million shares are for private placement to selected investors, while the remaining portion of 100.0 million shares is reserved for Bumiputera investors approved by the Ministry of Investment, Trade and Industry, which will also be done via private placement.
M & A Securities will underwrite a total of 80.0 million new shares made available to the Malaysian public and pink form allocations.
SSF Home managing director and chief executive officer of SSF Home, Wong Choong Loong said: "We are delighted to sign the underwriting agreement with M & A Securities, a significant step toward our listing on the ACE Market of Bursa Securities. This exercise brings multifaceted benefits beyond the expected proceeds to be raised.”
“The listing status will enhance SSF Home's stature among customers and suppliers, strengthening our reputation and opening new avenues for growth.”
Wong said the Malaysian home furnishing retail industry is poised to grow, driven by various favourable factors such as the rising trend of higher spending on home furnishings, rising population and urbanisation as more people live in cities and have larger incomes, and proactive government support for affordable housing initiatives.
“In addition, the continuous influx of new shopping malls across the country present opportunities for retailers to expand their reach and cater to a broader customer base.
“At SSF Home, we are committed to capitalising on these favourable market conditions and maintaining our position at the forefront in the home furnishing retail industry.
“Moving forward, the majority of our IPO proceeds will be allocated to setting up new retail outlets throughout Malaysia. This strategic move is aimed at strengthening our brand visibility and attracting a larger customer base,” Wong said.
