KUALA LUMPUR (May 13): Bee Same Group Bhd, which is principally involved in the design, distribution, marketing and retailing of fashion accessories and apparel products, has filed for an initial public offering (IPO) on the ACE Market of Bursa Malaysia to grow its retail presence. 

The family-controlled company plans to use proceeds from the public issue to set up new boutiques, repay bank borrowings, fund working capital, expand in-house brands and refurbish existing departmental store counters, according to its draft prospectus.

Co-founded by its managing director Liew Sam Min and his spouse Teo Poh Hwa in 1984, the company owns and manages a portfolio of fashion accessories and apparel brands.

The company holds the licence or distributorship rights for eight international brands, including  Hush Puppies, Beverly Hills Polo Club, Austin Reed and Champion.

In addition to its licensed and distributed brands, the company also has its own range of in-house brands, namely Nicole, RAV Design, Ferrero and Shedy.  

As at the latest practicable date (March 31), Bee Same Group managed about 3,856 stock-keeping units (SKUs) of fashion accessories and 2,865 SKUs of apparel products.

The company operates and manages 392 departmental store counters in Malaysia and 13 department store counters in Brunei.

Currently, the company operates and manages two boutiques, which are located in Kuching, Sarawak and Petaling Jaya, Selangor. It plans to set up four new boutiques mainly to retail products under its in-house Nicole Brands, in a bid to reduce its reliance on the licensed and distributed brands.

The proposed IPO involves the public issue of 58.74 million new shares and an offer for sale of 19.58 million existing shares at a price to be determined later. All in all, the IPO offers up to 30% of the company based in Bee Same Group.

Under the public issue, 13.05 million shares will be made available for the Malaysian public and 2.61 million shares will be set aside for eligible persons.

Another 32.63 million shares from the public issue will be placed out to selected Bumiputera investors approved by the Ministry of Investment, Trade and Industry and the remaining 10.44 million shares for selected investors, both via private placement.

The offer for sale entails 19.58 million existing shares, which will accrue entirely to its selling shareholders LSM Prestige Capital Sdn Bhd, controlled by both Liew and Teo. Post-IPO, LSM Prestige’s stake in the company will be diluted to 51.53%, from 66.5% previously.  

Last year, the company made a net profit of RM7.85 million on the back of a revenue of RM87.73 million for the financial year ended March 31, 2025 (FY2025).

Geographically, Malaysia remained the group’s largest market, contributing 92.51% of FY2025 revenue, followed by Indonesia at 6.39% and Brunei at 0.91%. Hong Kong and Singapore collectively accounted for the remaining 0.19%.  

In terms of brand portfolio, Bee Same Group derives revenue from licensed and distributed brands, own in-house brands as well as customer brands.

Licensed and distributed brands accounted for 50.85% of Bee Same Group’s total revenue in FY2025, followed by its own in-house brands at 37.91%, while customer brands contributed the remaining 11.24%.

Customer brands refer to products supplied by Bee Same Group under arrangements on a white-label basis, including bag charms, lanyards and soft toys.

Bee Same Group’s gross profit margin stood at 36.27% in FY2023, improved to 37.44% in FY2024, before moderating slightly to 36.29% in FY2025.

Meanwhile, its profit-after-tax margin came in at 9.42% in FY2023, 9.30% in FY2024 and 8.91% in FY2025.

A key risk flagged in the prospectus is Bee Same Group’s reliance on department store operator Parkson Corporation Sdn Bhd, which contributed more than 30% of the group’s revenue throughout the financial years under review.

The group said any deterioration in Parkson’s business performance,which may result in store closures or reduced retail space allocation, could have a material adverse impact on Bee Same Group’s business and financial condition.

The prospectus also highlighted risks relating to its 49%-owned associate, Transmarco Globag Sdn Bhd, which consigns Hush Puppies fashion accessories in Malaysia.

Bee Same Group said it does not exercise control and has limited ability to influence key decisions in Transmarco Globag. It added that the company is exposed to potential earnings volatility in Transmarco Globag’s financial performance.