KUALA LUMPUR (Oct 12): Newly listed SSF Home Group Bhd ended its maiden trading day at 26.5 sen on Thursday, up 1.5 sen or 6% from its initial public offering (IPO) price of 25 sen, making its market debut one of the most lacklustre IPOs this year.
The furniture and home-living products retailer saw 148.35 million shares change hands, placing it as the third most active stock of the day on Bursa Malaysia. The volume traded is equivalent to 66% of the 224 million shares SSF Home offered under its listing exercise.
The counter, which started the day at 25 sen, climbed 10% to a high of 27.5 sen, but soon pared gains to reach a low of 24.5 sen. At its closing price of 26.5 sen, SSF Home is valued at RM212 million.
At its listing press conference, the group’s executive director/deputy chief executive officer Lok Kok Khong said the company plans to open 18 new retail stores in the next three years. This expansion will raise the total number of retail stores from the current 41 to 59.
Of the 18 new outlets, three will be in Selangor and Kuala Lumpur, seven in Kedah, Penang and Perak, six in Negeri Sembilan, Melaka and Johor, while two in the East states, he said.
“The 18 new outlets would potentially contribute to the increase in the group's existing market share,” he said, without giving a forecast.
Citing a report by independent market research firm Protégé Associates Sdn Bhd, Lok said the the group's RM174.47 million revenue for the financial year ended April 30, 2023 (FY2023) is equivalent to 0.4% of the country's home furnishing retail industry of RM46.93 billion in 2022.
With Bank Negara Malaysia keeping the overnight policy rate at 3%, Lok expects positive growth for the home furnishing retail sector, especially with the increasing adoption of smart technologies in home furnishing, as well as better prospects in the local property market.
SSF Home, which raised RM50 million in its IPO, is principally involved in the retail of furniture, home décor and home living products via its retail outlets and online channels.
Additionally, the group plans to revamp its IT infrastructure by adopting a new enterprise-wide resource planning system, upgrading its e-commerce website, and adding a payment module to its SSFHome Mobile application.
The group’s profit after tax (PAT) fell 46% to RM16.8 million in FY2022 from RM31.2 million in FY2021, as revenue dropped 22.63% to RM161 million from RM208.1 million. It saw PAT drop a further 4.76% to RM16 million in FY2023 on a revenue of RM174.5 million.
Over half its FY2023 revenue was contributed by its furniture segment.
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