KUALA LUMPUR (Oct 15): Goldfinch Group Bhd, a retailer of gold jewellery and bullion, is planning an initial public offering (IPO) on Bursa Malaysia’s ACE Market to raise funds for business expansion and brand development.

According to its draft prospectus, the IPO will comprise 112.5 million new shares and an offer for sale of 15.75 million existing shares. The exercise will offer investors a 28.5% equity stake in the company.

Proceeds from the offer for sale will go to Khoo Chin Huat, Goldfinch’s largest shareholder, and his wife Ng Soo Kim, who are divesting a combined 3.5% stake. Their shareholdings will be reduced from 70% to 49% post-listing.

Goldfinch plans to use proceeds from the IPO to open 17 new outlets, expanding its footprint from 66 nationwide. Of the 66 current outlets, 63 are in Peninsular Malaysia, while three are in Sabah.

Funds will also be allocated to strengthen brand visibility and customer engagement through targeted marketing strategies, including promotional campaigns, digital advertising, and participation in trade fairs and events.

Founded in 2012 and headquartered in George Town, Penang, Goldfinch retails its products under the “Goldfinch Jewelry” brand. Its outlets offer a range of gold jewellery, alongside investment-grade bullion.

For the financial year ended Dec 31, 2024 (FY2024), the company reported a profit after tax (PAT) of RM5.58 million on revenue of RM111.08 million. Its PAT margin stood at 5.03%, slightly lower than 5.22% in FY2023 but an improvement from 3.14% in FY2022.

In FY2024, the northern region contributed the company's largest share of revenue at 48.52%, followed by the central region (29.05%), southern region (14.27%), eastern region (4.07%), and Sabah (3.71%).

M&A Securities Sdn Bhd is the principal adviser, sponsor, underwriter, and placement agent for the IPO.