Convenience store operator KK Mart Retail Bhd has submitted its draft prospectus for an initial public offering (IPO) on Bursa Malaysia’s Main Market, almost four years after first announcing its listing plans.
The IPO exercise will involve the issuance of 210 million new shares and the sale of 630 million existing shares, with the final offer price to be determined later. Based on the draft prospectus filed with the Securities Commission Malaysia on Monday, the listing could offer up to a 24% stake in the company.
The institutional portion will consist of 735 million shares to be allocated through a book-building exercise, while the retail portion will comprise 105 million shares for eligible individuals who have contributed to the company. A Dow Jones Newswires report estimated the company could be valued at around RM3 billion.
Following the listing, the stake held by major shareholders Datuk Seri Dr Chan Kee Kan and Datin Seri Loh Siew Mui through K8 Resources Bhd is expected to reduce to as much as 71.85%, from 95.05% currently.
Chan, the company’s group managing director, founded the business in 2001 in Kuchai Lama and has since grown it into one of Malaysia’s leading convenience store chains. Today, KK Mart operates 996 outlets nationwide under the KK Super Mart and KK Mart brands, with most stores operating 24 hours a day.
The company plans to use proceeds from the IPO to expand its network by opening 302 new stores over the next 15 months, increasing its total number of outlets to 1,290. Funds will also be used for distribution centre expansion, digital upgrades, IT systems and repayment of bank borrowings.
For the financial year ended June 30, 2025 (FY2025), KK Mart recorded a net profit of RM96.98 million, down 4.5% from RM101.6 million a year earlier, despite revenue rising 7.7% to RM1.57 billion. In FY2023, the group posted a net profit of RM98.71 million on revenue of RM1.25 billion.
Its gross profit margin improved to 28.8% in FY2025, compared with 28.1% in FY2024 and 27.8% in FY2023. However, profit-after-tax margin declined to 6.2% from 7% and 7.9% in the previous two years.
Maybank Investment Bank Bhd has been appointed as principal adviser, sole bookrunner, underwriter and placement agent for the IPO.
