KUALA LUMPUR (Jan 27): TeamStar Bhd, which mainly trades furniture fittings, is now taking orders from investors for its ACE Market listing, which will raise over RM53 million.
The initial public offering (IPO), priced at 26 sen a share, will raise RM34.32 million for the company from a public issue of new shares and another RM18.72 million for its shareholders from an offer of sale of existing shares, according to its official prospectus.
Applications will close on Feb 9, and listing has been scheduled for Feb 25.
WATCH: TeamStar prices ACE Market IPO at 26 sen
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. A group of 15 shareholders, including Tan’s wife Yeoh Baby, is selling their existing shares, equivalent to a combined 9% in the company.
TeamStar has earmarked RM23.2 million, or more than two-thirds of the proceeds from the public issue, for expansion and three new warehouses.
The company plans to add 10 outlets nationwide to its current network of 28 outlets that sell furniture fittings, including home improvement organisers and door accessories, as well as general hardware such as power tools and paints.
The warehouses are necessary, as two of its six warehouses are already operating at over 80% capacity, as well as 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.
TA Securities is the principal adviser, sponsor, sole underwriter, and sole placement agent for the IPO.