KUALA LUMPUR (Oct 2): Tile and stone surface distributor BMS Holdings Bhd, which is aiming to be listed on the ACE Market by the fourth quarter (4Q) of this year, has received approval from Bursa Malaysia Securities Bhd for its initial public offering (IPO).
The IPO comprises a public issuance of 364 million new shares (23.64% of the group's enlarged share capital) and an offer for sale of 156 million existing shares (10.13%). In total, the listing will offer investors up to a 33.77% stake in the company.
“Securing Bursa Securities’ approval for our listing on the ACE Market of Bursa Securities is a significant milestone for BMS Holdings, marking an exciting new chapter in our corporate journey... We are confident that becoming a listed entity will further strengthen our market presence and enable us to execute our ambitious growth plans more effectively,” said managing director Ang Kwee Peng in a statement.
The company 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.
It has 20 retail showrooms across Peninsular Malaysia, as well as Sarawak in East Malaysia.
BMS Holdings plans to use proceeds from the IPO 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.
Besides purchasing electric vehicle forklifts and upgrading existing facilities such as its retail outlets in Kota Damansara, Kepong and Klang, it also wants to enhance its operations for real-time, centralised data access across its showrooms and distribution centres.
The group saw increasing profit after tax (PAT) in the last three years, rising 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.
Alliance Islamic Bank Bhd is the principal adviser, sponsor, sole underwriter and placement agent for the IPO exercise.