KUALA LUMPUR (May 22): Ace Market-bound Synergy House Bhd announced that its initial public offering (IPO) was oversubscribed by 14.02 times by the Malaysian public, ahead of its tentative listing date of June 1.

In a press statement on Monday (May 22), Tricor Investor & Issuing House Services Sdn Bhd said that a total of 12,347 applications for 375.42 million issue shares with a value of RM161.43 million were received from the Malaysian public.

For the Bumiputera portion, a total of 7,277 applications for 164.16 million issue shares were received, representing an oversubscription rate of 12.13 times.

For the remaining Malaysian public portion, a total of 5,070 applications for 211.26 million issue shares were received which represents an oversubscription rate of 15.90 times.

The 12.5 million issue shares made available to eligible persons have also been fully subscribed.

Subsequently, TIIH shared that the private placement of 30 million issue shares to selected investors, as well as the 62.5 million IPO shares made available by way of private placement to Bumiputera investors approved by the Ministry of International Trade and Industry (Miti), have been fully placed out.

Synergy House is principally involved in the design, development and sale of ready-to-assemble (RTA) home furniture. Its IPO price of 43 sen per share is valued at the price-earnings multiple of approximately 12.93 times.

It recorded a net profit of RM16.62 million for the financial year ended Dec 31, 2022 (FY2022), higher than the RM14.39 million in FY2021, RM12.11 million in FY2020, and RM10.9 million in FY2019.

Revenue-wise, FY2022 saw the company achieve a topline of RM194.09 million, as compared to RM184.29 million in FY2021, RM122.89 million in FY2020, and RM111.48 million in FY2019.

Based on FY2022’s topline, the company’s largest geographical market was the UK with 42.4% of revenue contribution, followed by the US (39.01%), United Arab Emirates (11.62%) and others (1.63%).

Under the listing exercise, Synergy House aims to raise approximately RM34.4 million from its IPO of 130 million shares, including 50 million existing shares, at an issue price of 43 sen per share.

Of the RM34.4 million, the company has earmarked RM10 million for the purchase of inventories and RM1.5 million for the purchase of a racking system and forklifts for its e-commerce fulfilment centres in Johor, and RM10 million for repayment of borrowings.

Also, some RM1 million will be used towards e-commerce advertising and promotions, RM7.7 million for working capital, and the remaining RM4.2 million for listing expenses.

Kenanga Investment Bank Berhad is the principal adviser, sponsor, underwriter and placement agent for this IPO exercise.

The notices of allotment will be mailed to all successful applicants on or before May 30.