KUALA LUMPUR (April 25): Oasis Home Holding Bhd began accepting orders for its initial public offering (IPO) on Friday, aiming to raise up to RM42 million with shares priced at 28 sen on the ACE Market.
At the listing price of 28 sen per share, the company will be valued at 17.39 times its net profit of RM8.03 million for the financial year ended June 30, 2024 (FY2024).
Oasis Home’s IPO involves a public issuance of 100 million new shares as well as an offer for sale of 50 million existing shares, according to its prospectus launched on Friday. All in, the listing offers investors a 30% stake in the live commerce consumer lifestyle products marketer and seller.
The application period for the IPO will close on May 9, with the listing scheduled for May 28.
Oasis Home mainly sells kitchenware and household products ranging from pots to skincare, and from electric toothbrushes to supplements. More than 75% of its revenue comes from live commerce, where the company showcases its products during livestream sessions.
The company carries more than 5,000 active stock keeping units across home and living, beauty and personal care, wellness, and other products under its in-house brands, as well as those sourced from third party suppliers at the end of February 2025.
Under the public issue, 25 million new shares are made available to the Malaysian public, with 10 million shares for eligible persons and 65 million shares set aside for private placement to select investors.
Proceeds from the sale of new shares will total RM28 million, of which Oasis Home plans to allocate 48.9% for expansion of its live commerce sales channel and 12.9% for setting up its own fulfilment centre.
The company will also spend 7.1% of the gross proceeds to set up new headquarters in Sepang, Selangor, and 15.4% for working capital. The remaining 15.7% will be set aside to cover listing expenses.
Oasis Home chief executive officer Datuk Teoh Yee Seang expects its new fulfilment centre in Kuala Langat, Selangor, to help lower the company's operational costs and enhance profit margins. The centre is slated to be operational by the second quarter of 2026.
“Currently, our gross profit margin stands at around 40%. If we have [more] space, it will increase our margin. We are targeting around 45%,” Teoh told a press conference after the prospectus was launched.
The offer for sale of existing shares, meanwhile, will raise RM14 million, which will go entirely to Teoh, the sole selling shareholder of those shares. Teoh's direct stake in the company will be diluted to 35% post-listing.
Meanwhile, addressing concerns about the recent tepid sentiment in the local IPO market, Teoh said it remains confident in Oasis Home's business prospects.
“We are the first live commerce [company] that will [list on Bursa Malaysia], and I truly believe in the future of e-commerce consumers. We are very confident in the upcoming [prospects], that we will be at a growing stage,” Teoh added.
So far, Cuckoo International (MAL) Bhd and SPB Development Bhd, which were both slated to list on the Main Market of Bursa Malaysia this month, have postponed their plans, citing the ongoing market volatility and concerns about the impact of US tariff policies on investor sentiment. Cuckoo pushed its planned listing date from April 30 to June 24, while SPB, initially eyeing April 21, has yet to announce a new date.
MIDF Amanah Investment Bank is the IPO’s adviser, sponsor, underwriter and placement agent.