KUALA LUMPUR (April 20): Convenience store operator KK Mart Retail Bhd has filed for an initial public offering (IPO) on Bursa Malaysia’s Main Market, nearly four years after first announcing its plans.
The plan to list within one to three years from May 2023 was delayed after a March 2024 controversy over socks with the word “Allah” being sold at a KK Mart outlet.
The IPO will comprise a public issue of 210 million new shares and an offer for sale of 630 million existing shares, at a price to be determined later. All in all, the listing would offer up to a 24% stake in the company, according to its draft prospectus filed with the Securities Commission Malaysia on Monday.
The institutional offering comprises 735 million shares to be allocated at a price to be determined through a book-building exercise, while the retail offering consists of 105 million shares for individuals who have contributed to the company. A Dow Jones Newswires report expects KK Mart to be valued at around RM3 billion.
Post-listing, selling shareholders Datuk Seri Dr Chai Kee Kan and his wife Datin Seri Loh Siew Mui will see their stake held via K8 Resources Bhd reduced to as much as 71.85%, from 95.05% previously.
Chai, the company’s non-independent executive director and group managing director, founded the business in 2001 in Kuchai Lama and has since expanded it into a nationwide convenience store chain.
The company, which operates the KK Super Mart and KK Mart retail chain, currently operates 996 stores in Malaysia, the majority of which operate around the clock.
It plans to use IPO proceeds to expand its store network by opening 302 new outlets, bringing its total to 1,290 stores over the next 15 months.
In addition, the IPO proceeds will also be allocated for distribution centre expansion, investment in digital, IT hardware and software, and repayment of bank borrowings.
The group reported a net profit of RM96.98 million for the financial year ended June 30, 2025 (FY2025), down 4.5% from RM101.6 million in FY2024, despite revenue rising 7.7% to RM1.57 billion, from RM1.45 billion a year earlier. For FY2023, it posted a net profit of RM98.71 million on revenue of RM1.25 billion.
Its gross profit margin improved steadily to 28.8% in FY2025, from 28.1% in FY2024 and 27.8% in FY2023. However, the profit-after-tax margin trended lower, declining to 6.2% in FY2025, from 7% in FY2024 and 7.9% in FY2023.
Maybank Investment Bank Bhd is the principal adviser, sole bookrunner, underwriter and placement agent for the IPO.