99 Speed Mart weighs SEA expansion plans

99 Speed Mart Retail executive Director and CEO Lee Thiam Wah (fifth from left) and alternate director Albert Lee (far right) with other members of the board of directors at the company's debut on the Main Market

KUALA LUMPUR: 99 Speed Mart Retail Holdings Bhd, newly listed on Bursa Malaysia's Main Market, has not ruled out expanding into Southeast Asia if suitable opportunities arise.

Its alternate director Albert Lee said the retailer remains open to promising collaboration opportunities.

"We are opportunistic. We have no firm plans yet, but if an opportunity arises, we will consider it," he told reporters after the company's debut today.

Trading under the stock name 99SMART, the counter made a strong debut, rising 12.12 per cent to RM1.85, up from its initial public offering (IPO) price of RM1.65, with 53.82 million shares traded.

Domestically, he said 99 Speed Mart is focusing on strengthening its bulk sales operation, an e-commerce service for a minimum order of RM500, following the opening of the Southern region outlet in July.

The service began in September last year in the Central region.

"We are assessing the activity and the market's reaction to it. We will adjust accordingly, but we are positive," he noted.

Albert also mentioned that 99 Speed Mart is expanding Yiwu Speed Mart Import and Export and Yiwu J-Jade Trading in China to enhance procurement activities.

From its IPO, the firm raised RM2.36 billion, part of which will be used to increase its outlet count to 3,000 by 2025 from the current 2,651.

With plans to open 250 new outlets annually, Lee aims for growth exceeding the retail industry average of 5.0 per cent.

"What we want to do is to be at least above that," he added.

99 Speed Mart’s listing marks Malaysia’s largest initial public offering in seven years, following Lotte Chemical Titan Holding Bhd’s listing in 2017, which raised RM3.77 billion.

Regarding the share performance, he said it reflects confidence in the company and will provide momentum for its future progress.

Founder, executive officer, and chief executive officer Lee Thiam Wah described today as a significant milestone for 99 Speed Mart as it enters the capital markets to support its growth ambitions.

"Our vision remains clear, that is to solidify our position as one of Malaysia’s market leaders in the retail grocery sector,” he said.

Thiam Wah also expressed gratitude for the company's current success and its listing on Bursa Malaysia.

"Notwithstanding our listing on the exchange, it also means that we accept a higher level of accountability and transparency between the company and the public.

"This is something we are happy to do, and we will continue to ensure that the business grows and develops moving forward," he added. - Bernama