BMS Holdings Bhd, a Johor-based building materials distributor, saw its shares fall below its initial public offering (IPO) price during its debut trading session on the ACE Market on Monday, December 8. The stock opened at 19.5 sen per share, down from its IPO price of 22 sen, and quickly dropped to a low of 18.5 sen shortly after trading commenced. By 9.15am, the share price had recovered slightly to 19 sen, representing a nearly 14% decline, with over 34 million shares changing hands. At this price, BMS Holdings was valued at RM292.6 million.
BMS Holdings Bhd managing director Ang Kwee Peng (third from left) and the company’s board members at Monday’s listing ceremony.
The decline comes on the heels of a relatively subdued IPO, where applications from public investors amounted to just slightly more than double the shares available for subscription, making it one of the least oversubscribed public offerings in Malaysia this year. Through the IPO, the company raised RM80.1 million from newly issued shares, with an additional RM34.3 million generated from an offer for sale (OFS) by existing shareholders.
BMS Holdings operates across retail, wholesale, and project sales of building materials, with a focus on tiles and stone surfaces such as porcelain and ceramic tiles, engineered stones, natural stones, and mosaics. The company also offers complementary bathware and kitchenware products to its customers.
According to its IPO prospectus, approximately 43% of the proceeds from the new share issuance will be allocated to expanding BMS Holdings’ retail and distribution network. This includes plans to open new showrooms in Seremban, Selangor, and Kuala Lumpur, as well as establishing a new distribution centre in the Klang Valley. The company also plans to acquire electric vehicle forklifts and upgrade existing facilities, including its retail outlets in Kota Damansara, Kepong, and Klang, along with the Pasir Gudang distribution centre.
Another 21% of the IPO proceeds will be invested in enhancing the company’s digital infrastructure, including the implementation of an upgraded enterprise resource planning (ERP) system and warehouse management system. The remaining funds are earmarked for working capital, marketing activities, and listing-related expenses.
Proceeds from the OFS were distributed to a group of more than 10 shareholders, including co-founders and directors Ang Kwee Peng (managing director) and Lee Kok Chuan (executive director), who have built the company over more than three decades.
Alliance Islamic Bank served as the principal adviser, sponsor, sole underwriter, and placement agent for the IPO. Despite the soft debut, analysts note that the company’s strong long-term growth plans, including retail expansion and digital upgrades, could support future performance as it continues to establish a broader footprint in Malaysia’s building materials market.
