Convenience store operator KK Mart Retail Bhd has submitted a draft prospectus for its IPO listing on the Main Market of Bursa Malaysia, nearly four years after planning to list. The move is seen as an effort to strengthen the company’s position in the local retail sector.
The IPO involves the issuance of 210 million new shares and the sale of 630 million existing shares, with an estimated 24% stake offered to investors.
The institutional portion comprises 735 million shares through a bookbuilding process, while 105 million shares are allocated to retail investors. The company’s valuation is estimated at around RM3 billion.
After the listing, the holdings of major shareholders including Chan Kee Kan and Loh Siew Mui through K8 Resources are expected to be reduced to around 71.85% from more than 95% currently.
Founded in 2001 in Kuchai Lama, KK Mart now operates 996 outlets nationwide under the KK Super Mart and KK Mart brands, with most operating 24 hours.
The company plans to open 302 new stores within 15 months, taking the total to around 1,290 outlets.
The IPO proceeds will be used for network expansion, distribution centre upgrades, investments in digital and IT systems and repayment of bank loans. Maybank Investment Bank has been appointed as the lead advisor for the listing.
In terms of financial performance, KK Mart recorded a net profit of RM96.98 million for the financial year ended June 2025, down slightly from RM101.6 million previously despite revenue increasing to RM1.57 billion.
Gross profit margin showed an improvement, but net margin declined, reflecting operating cost pressures.
