KUALA LUMPUR (May 12): KK Mart Retail Bhd plans to start meeting potential cornerstone investors next month for the convenience store chain operator listing, according to the Wall Street Journal (WSJ).
The company, which could be valued at about US$750 million or nearly RM3 billion, aims to launch its initial public offering (IPO) in early September, the American financial newspaper reported on Tuesday, citing unidentified people familiar with the process.
Listing is targeted by early October, the report said.
Cornerstone investors – typically large institutional investors such as pension funds and insurers – commit to take up a portion of IPO shares before they are marketed to other retail and institutional investors. Their presence helps to build up other investors’ confidence to invest in the IPO.
The company, which operates more than 1,000 eponymous convenience stores, didn’t immediately respond to the Journal’s request for comment.
The proposed IPO on the Main Market comprises a public issue of new shares and an offer for sale of existing shares at a price to be determined later, according to its draft prospectus filed in April. All in all, the listing would offer up to a 24% stake in the company.
Proceeds from the public issue will be used to expand its network by another 302 outlets, bringing its total to 1,290 stores over the next 15 months. The company also plans to expand its distribution centre, invest in digital, IT hardware and software, and repay bank borrowings.
KK Mart reported a net profit of RM96.98 million for the financial year ended June 30, 2025 (FY2025), on revenue of RM1.57 billion.
Maybank Investment Bank is the principal adviser, sole bookrunner, underwriter and placement agent for the IPO.