KUALA LUMPUR (July 4): TeamStar Bhd, which mainly trades furniture fittings, has filed for an initial public offering (IPO) on the ACE Market of Bursa Malaysia to raise funds for the expansion of retail outlets and warehouses.

The company plans to add 10 outlets nationwide, according to its draft prospectus posted to Bursa Malaysia. TeamStar currently has 28 outlets selling furniture fittings, including home improvement organisers and door accessories, as well as general hardware such as power tools and paints.

“Moving forward, we intend to strengthen our market presence by expanding our network of retail outlets in Malaysia, particularly in Johor, Kedah, Penang, as well as Sabah and Sarawak — which will mark our entry into East Malaysia,” the company said.

Based in Puchong, Selangor, TeamStar has been active in Malaysia’s home improvement industry for nearly three decades. The company is family-managed, headed by Tan Lee Kueng, who started the business trading furniture fittings, edge banding, as well as door and window fittings in 1996.

Tan is the executive vice-chairman and chief executive officer of TeamStar, while his son Tan Jian Wei is the chief financial officer.

For the financial year ended Dec 31, 2024 (FY2024), TeamStar posted a net profit of RM16.85 million, on the back of RM130.22 million in revenue. Of the total revenue, 57.85% came from its retail segment, while 42.15% was contributed by its trading and value-added services segment.

Proceeds from the IPO have also been earmarked for the acquisition of a warehouse and the renovation of another, as two of its six warehouses are already operating at over 80% capacity. The additional storage is necessary due to the new products and the new outlets, TeamStar said.

The rest of the proceeds will be set aside as working capital, to repay bank borrowings, and defray listing expenses.

The proposed IPO involves a public issue of 132 million new shares, and an offer for sale of 72 million existing shares at a price to be determined later. All in all, the listing offers investors up to a 25.5% stake in the company.

A group of 15 shareholders, including Tan’s wife Yeoh Baby, will be selling their existing shares, equivalent to a combined 9% in the company.

The public issue, meanwhile, involves 40 million new shares which will be offered to the Malaysian public — with at least 50% reserved for Bumiputera investors, while another 92 million shares will be allocated via private placement to approved Bumiputera investors.

TA Securities Holdings Bhd is the principal adviser, sponsor, sole underwriter, and sole placement agent for the IPO.