MST Golf Group Berhad, the largest chain of golf specialty retailer of golf equipment in Malaysia, unveiled its initial public offering (“IPO”) prospectus today at the EQ, Kuala Lumpur. This is in conjunction with its proposed listing on the Main Market of Bursa Malaysia Securities Berhad (“Bursa Securities”) which is set for 20 July 2023.
MST Golf’s IPO involves a public issue of 160.0 million new shares as well as an offer for sale of up to 68.0 million existing shares, based on the IPO price of RM0.81 per share.
Approximately RM129.6 million in IPO proceeds will be raised by the Company via the public issue which will be utilised by MST Golf and its subsidiaries (the “Group”) to cater for the next phase of its business expansion.
MST Golf has earmarked close to 90.0% of the primary proceeds for the Group’s expansion of in its domestic and new geographical markets. Another 2.3% will be for the upgrading of digital technology facilities along with 2.5% being channelled towards working capital.
The remaining proceeds will be used to defray listing expenses. Post-listing, MST Golf has adopted a dividend policy that targets to return 30.0% of its earnings to shareholders.
Established in 1989, MST Golf has a strong track record of growing its golf retail footprint and product offerings within its home market, Malaysia, as well as Singapore, with plans to further expand its retail coverage in foreign countries namely Indonesia, Thailand and Vietnam.
MST Golf operates 44 retail outlets, comprising 36 outlets in Malaysia and 8 outlets in Singapore. Between 2019 and 2022, MST Golf recorded a compounded annual growth rate (“CAGR”) 19.6% and 41.8% in revenue and profit after tax (“PAT”), respectively.
This was on the back of the Group’s revenue and PAT of RM176.0 million and RM10.2 million, respectively, for the financial year ended 31 December (“FYE”) 2019, as compared with RM300.9 million and RM29.1 million in revenue and PAT, respectively, for FYE 2022.
According to an independent market report by Vital Factor Consulting Sdn Bhd, MST Golf is the market leader in the sales of golf equipment comprising golf clubs, golf balls and accessories and golf apparel in Malaysia.
The Group commands a market share of 51.0% of golf equipment imported into Malaysia and is the largest chain of golf specialty retailer in Malaysia, based on data obtained in 2022.
The public issue portion of the IPO will be made available starting today and will close on 7 July 2023 at 5:00 pm. RHB Investment Bank is the principal adviser, sole underwriter, and sole placement agent for this IPO exercise.
