KUALA LUMPUR (Feb 25): Furniture fittings retailer TeamStar Bhd (KL:TEAMSTR) closed its first day as a public listed company on the ACE Market down nearly 10% amid subdued broader market conditions.

The counter opened at 26 sen on Wednesday, the same as its initial public offering (IPO) price, before falling to as low as 22 sen. TeamStar ended the day at 23.5 sen after more than 80 million shares changed hands. At the last price, the company had a market capitalisation of RM188 million.

The debut follows relatively light demand for its shares ahead of the listing, in line with its smaller market capitalisation. Applications for its IPO shares from public investors totalled about four times above the available number of shares.

The IPO raised RM34.32 million for TeamStar from the public issue of new shares, while RM18.72 million accrued to more than a dozen selling shareholders from an offer for sale of existing shares.

TeamStar earmarked RM23.2 million for expansion, including the establishment of three new warehouses and the rollout of 10 additional retail outlets nationwide. The remainder will be used for working capital, partial repayment of bank borrowings and listing expenses.

“We are here to build a company that is sustainable, disciplined, and trusted over time,” said TeamStar executive vice-chairman and chief executive officer Tan Lee Kueng in his speech at the listing ceremony.

Based in Puchong, TeamStar operates 28 outlets offering furniture fittings, home improvement organisers, door accessories and general hardware products.

The group was founded in 1996 and is a family-managed business led by Tan, with his son Tan Jian Wei serving as chief financial officer.

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

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

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