KUALA LUMPUR (April 16): Tile and stone surface distributor BMS Holdings Bhd is planning a listing on the ACE Market of Bursa Malaysia to raise funds to expand its operations and facilities nationwide.

According to its draft prospectus filed with Bursa Malaysia, the IPO will involve a public issue of 364 million new shares, representing 23.64% of BMS Holdings' enlarged share capital of 1.54 billion shares. Of the 364 million new shares to be issued, 77 million will be allocated to the Malaysian public, while 61.6 million will be set aside for eligible directors, employees and contributors to the group. Of the balance, 188.9 million will be placed out to selected investors, while 36.5 million placement shares will go to selected Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti).

In addition, 156 million existing shares, equivalent to 10.13% of the company's enlarged share capital, will be offered for sale through private placement to selected Bumiputera investors approved by Miti. In total, the listing will offer investors up to a 33.77% stake in the company.

The company, incorporated in 2023, first started its business in 1993 under Jubin 1990, before it expanded into new markets and segments under several different units. Today, the group is engaged in the retail, wholesale and project sales of tiles and stone surfaces. Its product range includes porcelain and ceramic tiles, natural stones such as marble, granite and limestone, engineered stones and mosaic tiles. The company also offers complementary bathware and kitchenware products.

BMS Holdings currently operates 20 retail showrooms across Peninsular Malaysia — specifically in Johor, Negeri Sembilan, Selangor and Kuala Lumpur — as well as Sarawak in East Malaysia.

Its profit after tax (PAT) has been climbing in the last three years, from RM10.33 million in FY2022 to RM14.28 million in FY2023, and further to RM21.23 million in FY2024, as revenue grew from RM207.89 million to RM255.05 million and later to RM293.92 million. PAT margin rose from 4.97% in FY2022 to 7.22% in FY2024.

BMS Holdings plans to use the IPO proceeds to fund the expansion of its retail and distribution footprint, including setting up new showrooms in Seremban, Selangor and Kuala Lumpur, and a new distribution centre in the Klang Valley. It also aims to purchase electric vehicle forklifts and upgrade existing facilities such as its retail outlets in Kota Damansara, Kepong and Klang, as well as its Pasir Gudang distribution centre.

The group also wants to digitally enhance its operations by integrating an expanded Enterprise Resource Planning (ERP) and Warehouse Management System (WMS). These upgrades, which include hardware and software installation, will enable a centralised system with real-time access to data from its showrooms and distribution centres.

Proceeds from the offer for sale will go to its major shareholders and co-founders, managing director Ang Kwee Peng and executive director Lee Kok Chuan, and 10 other selling shareholders. Post-IPO, Ang’s stake will be reduced from 46.35% (direct and indirect) to 30.82%, while Lee’s stake will drop from 45.58% (direct and indirect) to 30.33%.

Alliance Islamic Bank Bhd is the principal adviser, sponsor, sole underwriter and placement agent for the IPO exercise