Malaysia-based convenience retailer Bison Consolidated Bhd is looking to raise $21.83 mln via initial public offering for the further expansion of its retail stores chain.
The company’s IPO would comprise 80.62 million new shares of MYR0.20 each at an indicative retail price of MYR1.10 per share.
As per the company, the IPO comprises an institutional offering of 62.31 million shares of which 31.306 million shares would be offered to Malaysian institutions and selected investors through a book building exercise. The remaining 31.01 million shares would be offered to Bumiputera institutional and selected investors at the institutional price.
The retail offering of 18.30 mln shares as IPO comprises 15.5 mln shares to the Malaysian public and 2.80 mln shares to the eligible directors, employees and persons who have contributed towards the success of Bison and its arms, the company said on Friday.
“We have plans to invest approximately RM50mil of our IPO proceeds to expand our network of outlets and enhance our existing outlets in order to meet the growing demands from our customers.We will also use RM14.45mil of this IPO proceeds to invest in business functions and our back-end operations to improve and establish nationwide logistics and IT capabilities to support our growing network and product base,” said Dang Tai Luk, managing director of Bison Group.
“About RM32.23mil of our IPO proceeds will be utilised as working capital to finance inventory stocking for our new and existing outlets as well as our other working capital requirements,” he further added.
Bison, set up in 1996, is involved in the business of press and convenience retailing under its main trade name of “myNEWS.com”. It is the second largest retail convenience store industry player in Malaysia and has an estimated market share of 8.6 per cent in terms of outlet numbers and 6.6 per cent in terms of revenue in 2015.