Synergy House Berhad a cross-border e-commerce seller and furniture exporter of ready-to-assemble (“RTA”) home furniture, launched the prospectus for its initial public offering today in conjunction with its upcoming listing on the ACE Market of Bursa Malaysia Securities Berhad.
The IPO is said to raise RM34.4 million via the issuance of 130.0 million new shares at an IPO price of RM0.43 per share which the group expects to support its future growth and expansion plans.
Synergy is raising capital for various expansion plans including RM10 million or 29.07% for purchasing of inventories for the Group’s proposed e-commerce fulfilment centre in Muar, Johor and e-commerce fulfilment centres in overseas countries; RM1.5 million or 4.36% to purchase racking system and forklifts for the Group’s proposed e-commerce fulfilment centre in Muar, Johor; RM1.0 million or 2.91% for e-commerce advertisement and promotions; RM10.0 million or 29.07% to repay borrowings; RM7.7 million or 22.38% for working capital purposes; and RM4.2 million or 12.21% for listing expenses
Executive Director of Synergy House, Mr. Tan Eu Tah said, “Given that global demand for furniture e-commerce is expected to continue to grow, our IPO will enable us to fuel our future growth and expansion plans by tapping into the equity capital market for future fund raising. Our IPO will also provide us with the financial flexibility to pursue growth opportunities as and when they arise. The recognition gained through our listing status will also enhance our reputation in the marketing of our products and services, retention of employees, expansion of customer base as well as attract new employees.”
For the financial years ended 31 December (“FY”) 2019, FY 2020, FY 2021 and FY 2022, the Group registered revenue of RM111.5 million, RM122.9 million, RM184.3 million and RM194.1 million respectively. In particular, the Group have seen encouraging growth from its B2C segment whereby its B2C sales have increased from RM1.99 million in the FY 2019 to RM49.63 million in FY 2022 at a compound annual growth rate of 192.17%.
Kenanga Investment Bank Berhad is the Principal Adviser, Sponsor, Underwriter and Placement Agent for the IPO exercise.
Synergy House Berhad will list on the ACE Market of Bursa Malaysia on 1st of June 2023.
