Kuala Lumpur (14 May 2023) — Synergy House B
erhad (“Synergy House” or the “Group”), a cross-border e-commerce seller and furniture exporter of ready-to-assemble (“RTA”) home furniture, launched the prospectus for its initial public offering (“IPO”) last Friday in conjunction with its upcoming listing on the ACE Market of Bursa Malaysia Securities Berhad.
The IPO will raise RM34.4 million via the issuance of 130.0 million new shares at an IPO price of RM0.43 per share which is expected to support the Group’s future growth and expansion plans. The IPO proceeds raised will be used by the Group in the following manner:
- RM10.0 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.
- 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.
