SSF Home makes flat debut on ACE Market

SSF Home Group Bhd 's initial public offering has been oversubscribed by 8.25 times and will utilise its RM50mil proceeds for capital expenditure, start-up costs, repayment of bank borrowings, marketing activities, general working capital and listing expenses. — LOW BOON TAT/THE STAR

PETALING JAYA: SSF Home Group Bhd is expressing confidence in the home furnishings retail industry in Malaysia after its debut on the ACE Market of Bursa Malaysia yesterday.

The company’s shares were flat with an opening price of 25 sen on volume of 15.9 million.

SSF Home said the sector’s prospects were expected to remain positive for the foreseeable future propelled by the increasing affluence of Malaysians, growing population as well as rising urbanisation.

SSF Home was also confident on the country’s retail outlook despite the current economic conditions, inflation and the interest-rate environment.

Commenting on the counter’s price performance on the ACE Market on its debut, the company’s executive director and deputy chief executive officer Lok Kok Khong said, “It is a fair value to what the group initially offered.”

“Moving forward, we will now change our focus to expanding our business, especially on branding, increasing memberships and delivering value – not only to our members, but also investors and staff as well,” he told a press conference after the listing ceremony.

The home-living retailer said that it will be advancing its competitive standing within the industry by enlarging its presence across Malaysia and enhancing its digital capacities.

“With the capital raised through the initial public offering (IPO), we are now well-poised to execute our expansion strategy, which entails the opening of 18 new outlets within the next three years,” said SSF Home managing director and chief executive officer Wong Choong Loong.

From a total of 41 outlets nationwide, SSF Home will then operate 59 outlets within the next three years to strengthen its market presence and brand visibility.

He said the group will be enhancing its information technology infrastructure by migrating to a new enterprise-wide resource planning (ERP) system, enhancing its eCommerce website as well as upgrading its mobile application, which are expected to go live in the fourth quarter of 2023.

SSF Home chief financial officer Wai Chee Poon said enhancing the group’s IT infrastructure will create more operational efficiency.

“With the new system, we will use less paper and will be able to obtain instant information about consumer spending patterns and our members.

“This will then help us to make better strategic business decisions in the future,” she said.