KUALA LUMPUR (Nov 26): BMS Holdings Bhd, a Johor-based distributor of building materials, said the public portion of its initial public offering (IPO) was oversubscribed by just 1.40 times.
BMS Holdings said it received applications totalling 185.07 million shares for the 77 million shares offered to the public, according to its statement on Wednesday. The Bumiputera public tranche was oversubscribed by 0.19 times, while the non-Bumiputera portion saw a slightly higher take-up at 2.62 times.
BMS is scheduled to list on the ACE Market of Bursa Malaysia on Dec 8.
“The interest received for our IPO demonstrates the steady support and the market’s appreciation of our retail platform and underlying fundamentals. This milestone reflects over three decades of dedication, innovation, and trust built with our customers and partners,” said managing director Ang Kwee Peng in a statement.
He added that the funds raised will accelerate the group's expansion, enhance its retail network, strengthen its supply chain infrastructure, and support its long-term growth strategy.
The IPO raised RM80.1 million from new shares, while selling shareholders will receive another RM34.3 million from the offer for sale.
BMS Holdings operates across retail, wholesale, and project sales of tiles and stone surfaces, including porcelain, ceramic tiles, engineered stones, natural stones, and mosaics. It also supplies complementary bathware and kitchenware.
The company plans to allocate 42.8% (RM34.3 million) of its IPO proceeds to expand its retail and distribution footprint, including new showrooms in Seremban, Selangor, and Kuala Lumpur, as well as a new distribution centre in the Klang Valley.
It will also acquire electric vehicle forklifts and upgrade existing facilities, including its retail outlets in Kota Damansara, Kepong, and Klang, alongside its Pasir Gudang distribution centre.
Another 21.2% (RM17 million) will be used to enhance digital infrastructure through the implementation of an upgraded enterprise resource planning system and a warehouse management system.
The remaining funds will be channelled towards working capital (23.5%), marketing activities (5%), and listing expenses (7.5%).
Proceeds from the offer for sale will go to a group of more than 10 shareholders, including Ang and executive director Lee Kok Chuan. The duo co-founded the business more than three decades ago.
Alliance Islamic Bank Bhd is the principal adviser, sponsor, sole underwriter, and placement agent for the IPO.