KUALA LUMPUR (Nov 8): Oasis Home Holding Bhd, a distributor and retailer of kitchenware and household products, has filed for an initial public offering (IPO) on the ACE Market to raise funds for expansion and working capital.

The bulk of the proceeds will be used to set up five additional live commerce sales channels on social media platforms Facebook and TikTok, Oasis Home said in its draft prospectus. The company also plans to hire more than 50 people to support the increase in sales channels, it said.

Further, the company plans to set up its own fulfilment centre in Kuala Langat, Selangor which will also serve as inventory storage, Oasis Home said, noting that having its own facility will help to cut fees paid to third-party providers amid rising volume.

Oasis Home is involved in retail and wholesale of ketchenware and household products ranging from pots to skincare and from electric toothbrush to supplements. Nearly all of its revenue, however, comes from sales directly to consumers.

More than 75% of its latest total revenue, meanwhile, are through live commerce where the company showcases its products during livestream sessions. For the year ended June 30, 2024, Oasis Home made a net profit of RM8.07 million on revenue of RM54.82 million.

The proposed IPO involves a public issue of 100 million new shares and an offer for sale of 50 million existing shares at a price to be determined later, the draft prospectus showed. All in all, the listing would offer investors up to a 30% stake in the company based in Puchong, Selangor.

Funds raised from the public issue will also go towards purchasing of inventories and part-financing the construction of a new headquarters in Sepang. The rest has been earmarked for defraying estimated listing expenses.

Meanwhile, any proceeds from the sale of existing shares will go entirely to the sole selling shareholder Datuk Teoh Yee Seang, who is also the company’s chief executive officer.

Teoh mostly owns Oasis Home together with private vehicle Oasis Management Team Sdn Bhd, and his direct stake in the company will be diluted to 35%.

He will still have another indirect 25% stake via Oasis Management Team, which is also held by Oasis Home's chief operating officer and his wife Tang Jing Wen, operations manager Fang Chin Shyan @ Puen Chin Shyan and head of live commerce Chong Hui Ying.  

MIDF Amanah Investment Bank is the IPO’s adviser, sponsor, underwriter and placement agent.