KUALA LUMPUR, June 3 – Synergy House Berhad, a cross-border e-commerce seller and furniture exporter of ready-to-assemble (RTA) home furniture, has launched its prospectus for its upcoming initial public offering (IPO) and listing on the ACE Market of Bursa Malaysia Securities Berhad. The IPO is expected to raise RM34.4 million through the issuance of 130.0 million new shares at an IPO price of RM0.43 per share. The funds raised will be used to support the Group’s growth and expansion plans.

The Group plans to use the proceeds for purchasing inventories for the proposed e-commerce fulfillment center in Muar, Johor and e-commerce fulfillment centers in overseas countries. The funds will also be used for e-commerce advertisement and promotions, repaying borrowings, working capital purposes, and listing expenses. According to Executive Director of Synergy House, Mr. Tan Eu Tah, “Given that global demand for furniture e-commerce is expected to continue to grow.

Our IPO will enable us to fuel our future growth and expansion plans by tapping into the equity capital market for future fund raising.” He also added that the IPO will enhance the Group’s reputation and provide financial flexibility to pursue growth opportunities. The Group plans to expand its business-to-consumer (B2C) segment by using a portion of the IPO proceeds to purchase inventories for the B2C segment and by carrying out advertising and promotion initiatives on third-party e-commerce platforms.

They also plan to grow their B2C sales by expanding to more e-commerce platforms in new markets. 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. 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.

The Group’s B2C sales have increased from RM1.99 million in FY 2019 to RM49.63 million in FY 2022 at a compound annual growth rate of 192.17%. The IPO is expected to be well received by investors, given the Group’s strong financial performance and growth potential in the e-commerce furniture sector.

Pocket News