99 Speed Mart Founder Now Richer As Malaysia's Biggest IPO In 7 Years Jumps On Debut
A rags-to-riches story.
By Sadho Ram — 09 Sep 2024, 11:58 AM
Shares of 99 Speed Mart Retail Holdings Bhd opened at RM1.85, up 12.1% higher or a 20 sen premium to its initial public offering (IPO) price of RM1.65, on its first day of listing on Bursa Malaysia's Main Market
The largest convenience store chain in the country has successfully raised RM660 million through its IPO, marking the biggest IPO in Malaysia in the last seven years and a significant milestone in its journey.
According to The Edge, the counter traded even higher at RM1.91, up 26 sen or 15.76%, valuing the mini market group at RM16.04 billion, based on its issued capital of 8.4 billion shares.
The strong debut has significantly increased the wealth of founder Lee Thiam Wah, placing him ahead of Genting Group chairman Lim Kok Thay and just behind Sunway Group founder Jeffrey Cheah.
Expressing optimism about the company's future as a public listed entity, Lee said that it will intensify efforts to create greater value for all stakeholders
"We will be steadfast in our commitment to build the company further.
"These funds will be the catalyst behind our expansion plans as we increase the number of outlets across Malaysia and support growth by establishing new distribution centres, purchasing delivery trucks and upgrading existing outlets," he said, as reported by the New Straits Times.
99 Speed Mart currently operates over 2,600 outlets nationwide and aims to reach 3,000 outlets by the end of 2025. To support this growth, the company plans to open two new distribution centres in Sarawak and Selangor by the end of this year and next year, respectively.
By 2027, it aims to have at least 25 distribution centres nationwide.
Lee, who contracted polio as an infant and became a wheelchair user, came from humble roots.
A logo of 99 Speed Mart pictured at one of its mini-markets at Ampang.
Image via Hasnoor Hussain/ReutersLee founded 99 Speed Mart in 1987 as a traditional sundry store
According to FMT, Lee sold the shop later and used the funds to open his first mini-mart called Pasar Mini 99 in Klang Utama in 1992. Within a few years, the business grew to eight outlets in Klang.
In the early 2000s, Lee rebranded his Pasar Mini 99 to 99 Speedmart.
