ACE Market-bound SSF Home's IPO oversubscribed 8.25 times

KUALA LUMPUR: SSF Home Group Bhd has garnered significant interest from investors for its initial public offering (IPO), which has been oversubscribed by 8.25 times ahead of its listing on the ACE Market of Bursa Malaysia Securities Bhd.

In a statement today, the home furniture and home living products retailer said it received a total of 5,348 applications for 370,044,200 shares with a value of approximately RM92.5 million for the 40 million shares allocated to the Malaysian public, representing an oversubscription rate of 8.25 times.

"For the Bumiputera category, there were a total of 2,636 applications received for 137,280,600 shares, translating into an oversubscription rate of 5.86 times.

"As for the other Malaysian public category, 2,712 applications were received for 232,763,600 shares, representing an oversubscription rate of 10.64 times.

"The 40 million shares available for application by the eligible directors, employees and persons who have contributed to the success of SSF Home have been fully subscribed,” it said.

Meanwhile, SSF Home said the private placement of 120 million shares, involving 100 million shares for Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI), and 20 million shares for selected investors, has also been fully placed out.

"Notices of allotment will be posted to all successful applicants by Oct 10, 2023,” it said.

Set to be listed on Oct 12, the SSF Home’s listing entailed a public issue of 200 million new ordinary shares at an issue price of RM0.25 per share, representing approximately 25 per cent of the enlarged share capital, with expected IPO proceeds of RM50 million.

In addition, there is also an offer for the sale of 24 million existing shares by way of private placement to selected investors.

Upon listing, SSF Home will have a market capitalisation of approximately RM200 million based on an issue price of RM0.25 per share and the enlarged share capital of 800 million shares.

"Armed with the IPO funds, we are now well-positioned to execute our expansion strategy, which entails establishing 18 new outlets in the coming three years.

"This strategic move will significantly bolster our presence in the home furnishing retail sector, enhancing our market presence and brand visibility in various towns and cities across Malaysia,” said SSF Home’s managing director and chief executive officer, Wong Choong Loong.

M & A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for SSF Home Group Bhd’s IPO exercise. - Bernama