KUALA LUMPUR (Aug 18): Homegrown furniture and home living products retailer SSF Home Group Bhd has inked an underwriting agreement with M&A Securities Sdn Bhd, for its initial public offering (IPO) and intended listing on the ACE Market of Bursa Malaysia.

The IPO exercise involves a public issue of 200 million new shares as well as an offer for sale of 24 million existing shares, according to SSF Home’s statement on Friday (Aug 18).

Of the 200 million new shares, 40 million shares will be made available to the Malaysian public via balloting, while 40 million shares are allocated to its eligible directors, employees, and persons who have contributed to the success of the group (pink form allocations).

Another 20 million shares are reserved for private placement to selected investors, while the remaining 100 million shares are set aside for Bumiputera investors approved by the Ministry of Investment, Trade and Industry, which will also be done via private placement.

Under the agreement, M&A Securities will underwrite a total of 80 million new shares made available to the Malaysian public and pink form allocations.

SSF Home, through its subsidiaries, is principally involved in the retail of furniture, home décor and home living products via retail outlets and e-commerce websites. The group offers a comprehensive range of furniture, home décor and home living products for use in various applications and settings.

Since its venture into the retail segment in 1990, SSF Home has established an extensive industry presence for over 30 years. The group has developed a network of 41 retail outlets strategically located in shopping malls as well as shoplots and standalone outlets in commercial areas throughout Malaysia.

The group is scheduled to be listed on the ACE Market by October 2023, with M&A Securities as the adviser, sponsor, underwriter and placement agent for the IPO exercise.

SSF Home managing director and chief executive officer Wong Choong Loong said the country’s home furnishing retail industry is poised to grow, driven by various favourable factors such as the rising trend of higher spending on home furnishings, as well as proactive government support for affordable housing initiatives.

“In addition, the continuous influx of new shopping malls across the country present opportunities for retailers to expand their reach and cater to a broader customer base.

"At SSF Home, we are committed to capitalising on these favourable market conditions and maintaining our position at the forefront in the home furnishing retail industry.

“Moving forward, the majority of our IPO proceeds will be allocated to setting up new retail outlets throughout Malaysia. This strategic move is aimed at strengthening our brand visibility and attracting a larger customer base,” he said.