KUALA LUMPUR: Home improvement product distributor and retailer Teamstar Bhd is seeking to raise RM53.04 million from its planned listing on the ACE Market on Feb 25, after pricing its initial public offering (IPO) at 26 sen per share.
The company is offering 204 million shares, comprising 132 million new shares and 72 million existing shares, according to its prospectus filed with Bursa Malaysia today.
The public issue of new shares is expected to raise RM34.32 million, while the offer for sale will allow existing shareholders to realise RM18.72 million.
Applications opened at 10am today and will close at 5pm on Feb 9.
Under the IPO, 40 million shares are allocated to the Malaysian public, while 16 million shares are reserved for eligible directors, employees and contributors.
Another 48 million shares will be placed out to selected investors, while 100 million shares are allocated to identified Bumiputera investors approved by the Investment, Trade and Industry Ministry.
Teamstar said proceeds from the IPO will be used primarily to fund business expansion and operational growth.
From the proceeds of the public issue, RM23.2 million will be channelled towards expansion, including the development of three additional warehouses, the group said.
Teamstar also plans to grow its retail footprint by opening 10 new outlets nationwide, adding to its existing network of 28 stores offering a range of home improvement products.
The company said the warehouse expansion is necessary to ease capacity constraints at its current facilities, with several locations operating at high utilisation levels, while also supporting the rollout of new products and outlets.
The balance of the IPO proceeds will be allocated for working capital requirements, repayment of bank borrowings, and listing-related expenses.
Founded on a business with roots dating back nearly three decades, Teamstar operates 28 ‘Teamstar’ outlets and one ‘Benova’ outlet, supported by factories and warehouses in Selangor, Johor and Penang.
TA Securities Holdings Bhd is the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO. Teamstar’s shares have been classified as syariah-compliant, according to the prospectus.
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