KUALA LUMPUR — Lee Thiam Wah, who started his retail journey from a roadside snack stall in Malaysia, has officially entered the billionaire club following the successful public debut of his company, 99 Speed Mart Retail Holdings Bhd. The $531 million initial public offering (IPO), Malaysia’s largest in seven years, has propelled Lee’s net worth to approximately $3.3 billion.
The IPO, priced at 1.65 ringgit ($0.38) per share, underscores a vibrant moment for Malaysia’s capital markets and reflects investor confidence in the nation’s economic prospects. The listing marks Kuala Lumpur as a leading venue for market debuts in Southeast Asia this year, with the retail sector particularly attracting attention.
From Humble Beginnings to Retail Giant
Born in 1964 in Klang, Malaysia, Lee faced significant challenges early in life, including contracting polio that left him with limited mobility. Despite these obstacles and a modest background, Lee’s determination led him to start his first grocery shop in 1987. By the late 1990s, the business had evolved into Pasar Mini 99, a chain of eight stores, with Lee’s wife Ng Lee Tieng joining as a purchasing executive in 1997.
Today, 99 Speed Mart stands as the largest mini-market chain in Malaysia, commanding a 40% share in the mini-market segment and nearly 12% in the broader grocery retail market. The company’s IPO has solidified its dominance and Lee’s success story.
A Milestone for Malaysia’s IPO Market
Lee’s achievement is seen as a significant boost for Malaysia’s IPO landscape. The successful listing has revived interest in the Malaysian stock market, which is experiencing its best year since 2010. The stock surged 14% on its debut, closing at 1.88 ringgit.
The IPO attracted 14 cornerstone investors, including abrdn Asia Ltd. and UOB Asset Management (Malaysia). This level of interest highlights the positive market sentiment and the growing appeal of Malaysian equities.
Future Plans and Investments
The proceeds from the IPO will be allocated towards expanding 99 Speed Mart’s operations, including setting up new outlets, building distribution centers, acquiring delivery trucks, and repaying loans. For the first quarter of 2024, the company reported a profit after tax of 133.2 million ringgit on revenue of 2.4 billion ringgit.
Lee, who remains the company’s CEO, also holds stakes in other businesses, including the Malaysian franchise of Burger King and a significant share in Alliance Bank Malaysia Bhd.
Market Impact and Symbolism
The listing date of September 9, or 9/9, was deliberately chosen to align with the company’s name and the number’s auspicious symbolism in Chinese culture, representing longevity and prosperity.
Arun George, an analyst at Global Equity Research, highlighted that 99 Speed Mart’s scale creates a significant barrier to entry for competitors, reinforcing its dominant position in the Malaysian market.
Lee Thiam Wah’s journey from a roadside stall to a billionaire retail magnate exemplifies the potential for entrepreneurial success through perseverance and strategic vision.
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