Kuala Lumpur, Jan 27 — Furniture hardware retail chain Teamstar has officially launched its prospectus today, paving the way for its listing on the ACE Market of Bursa Malaysia on 25 February. The company aims to raise RM34.32 million through its initial public offering (IPO) to strengthen its presence in Peninsular Malaysia and expand into East Malaysia.
Teamstar, the Champion of the 2024 Golden Eagle Award, has demonstrated consistent growth after securing third place in 2023 and rising to the top spot last year.
IPO Structure and Fundraising Details
Under the IPO exercise, Teamstar will issue 132 million new shares, alongside an offer for sale of 72 million existing shares, representing 25.5% of the company’s enlarged share capital.
- 40 million shares will be offered to the Malaysian public
- 92 million shares will be allocated via private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI)
Meanwhile, the offer-for-sale portion includes:
- 16 million shares reserved for eligible directors, employees, and contributors
- 48 million shares placed with selected investors
- 8 million shares allocated to MITI-approved Bumiputera investors
Priced at 26 sen per share, the IPO is expected to raise RM34.32 million, giving Teamstar an estimated market capitalisation of RM208 million upon listing.
Utilisation of Proceeds
The funds raised will be used as follows:
- RM23.21 million to establish new retail outlets and warehouses
- RM4.65 million for working capital
- RM1.46 million to repay borrowings
- RM5 million to cover listing expenses
Expansion Plans: Entering East Malaysia
Executive Vice Chairman and Chief Executive Officer Tan Li Hong said the company has built a solid retail network since opening its first store in 2008. As of last year, Teamstar operates 29 retail outlets across Peninsular Malaysia.
“We plan to open 10 new retail outlets nationwide, focusing on Johor, Kedah, Penang, as well as Sabah and Sarawak. This marks Teamstar’s official entry into the East Malaysian market,” he said.
Chief Financial Officer Tan Jian Wei added that the group plans to acquire two new warehouses and refurbish an existing one over the next three years, enhancing operational capacity and logistics efficiency.
“Our store expansion, order growth, and warehouse development are closely aligned and will progress concurrently,” he noted.
Positive Outlook for Home Improvement Industry
According to an independent market research report by Protégé Associates, Malaysia’s home improvement industry is projected to grow at a compound annual growth rate (CAGR) of 4.4%, expanding from RM49.64 billion last year to RM59.19 billion by 2029.
“Based on revenue, our current market share stands at 0.3%, indicating significant room for growth,” Tan Jian Wei said.
Tan Li Hong added that demand from renovation activities in both new and ageing properties continues to support industry growth. Teamstar’s business has shown sustained improvement since 2022, reinforcing confidence in its future prospects.
While the company experienced softer same-store sales growth in the first half of last year amid global economic slowdown, performance improved in the second half as renovation activities picked up.
“With new outlets coming on stream, we remain optimistic about future same-store sales performance,” Tan Jian Wei said.
Stronger Ringgit Benefits Margins
He also noted that Teamstar sources products from China, India, and local suppliers. The recent strengthening of the ringgit has helped reduce procurement costs, contributing positively to gross margins.
The prospectus launch ceremony was attended by Independent Non-Executive Chairman Lim Teck Ping, Executive Director Wong Chun Chung, and TA Securities Head of Corporate Finance Koh Wen Fang.
TA Securities Holdings Berhad is the principal adviser, sponsor, sole underwriter, and sole placement agent for the IPO.
IPO Timeline
- Public application opens: Jan 27
- Application closes: Feb 9
- Balloting date: Feb 11
- Allotment date: Feb 23
- Listing date: Feb 25
About
Teamstar Berhad
Established in 1996 and headquartered in Puchong, Selangor, Teamstar Berhad is a leading home improvement solutions provider in Malaysia, specialising in furniture fittings, hardware, kitchen accessories and related products. With an extensive retail network and a strong focus on quality and service, Teamstar continues to strengthen its position as a trusted partner to both trade professionals and retail customers nationwide.