From left: Synergy House independent non-executive director Yong Kim Fui, independent non-executive director Lieu Pei Yee, non-independent executive director Teh Yee Luen, non-independent executive director Tan Eu Tah, independent non-executive director Yew Yong Ling and independent non-executive chairman Mok Juan Chek
KUALA LUMPUR: Synergy House Bhd
made its debut on the ACE Market of Bursa Malaysia at 38 sen a share, which was five sen or 11.63% lower than its initial public offering (IPO) price of 43 sen a share.
The stock was the most active in early trade, with 50.5 million shares crossing within the first half-hour of trading.
At the launch of its IPO prospectus, the cross-border e-commerce seller and furniture exporter of ready-to-assemble home furniture said RM10mil or 29.07% of the proceeds will go towards the purchasing of inventories for its proposed e-commerce fulfilment centre in Johor.
A further RM1.5mil or 4.36% will go towards purchasing a racking system and forklifts for the centre and RM1mil or 2.91% will be utilised for e-commerce advertisements and promotions.
Of the remaining amount, RM10mil (29.07%) will be used to repay borrowings, RM7.7mil (22.38%) will go towards working capital and RM4.2mil (12.21%) for listing expenses.
Executive director Teh Yee Luen said the group intends to expand the market reach of its B2C sales as it sees the market for home furniture continuing to grow.
"Our B2C sales have grown substantially over the past years on the back of e-commerce, at first in Malaysia and now in the US. We have also recently expanded our B2C sales in the UK and Canada.
"Directly selling to end-consumers has been a transforming experience for us as the first-hand information gained from them together with the insights on consumer preferences have been valuable for product development and in turn have supported our design capabilities,” he said in a statement.
For the 2019-2022 financial years, the group registered revenue of RM111.5mil, RM122.9mil, RM184.3mil and RM194.1mil respectively.
In particular, the group has seen encouraging growth from its B2C segment with sales increasing from RM1.99mil in FY2019 to RM49.63mil in FY22 at a compound annual growth rate of 192.17%.
