How will 99 Speed Mart use the RM600 million from its public issue?

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99 Speed Mart Will Allocate Funds from its Public Issue Primarily Towards Network Expansion and Infrastructure Development

99 Speed Mart plans to utilise the approximately RM600 million raised from its public issue predominantly for expanding its retail footprint and enhancing its operational infrastructure. The primary allocation will be towards increasing the number of its outlets, followed by significant investment in establishing new distribution centres and acquiring delivery vehicles to support this growth.
Expansion of Retail Outlets

A substantial RM389.0 million, representing 58.9 per cent of the public issue proceeds, is earmarked for the expansion of 99 Speed Mart's network of outlets. The company currently operates 2,651 outlets nationwide and aims to reach 3,000 outlets by 2025, indicating a strategic push to broaden its market presence.
Establishment of Distribution Centres

The company intends to allocate RM100 million, or 15.2 per cent of the public issue funds, towards setting up new distribution centres. This investment is crucial for supporting the planned geographical expansion, particularly in regions like the East Coast, where the company is looking to increase its reach.
Procurement of Delivery Trucks

A portion of RM55.0 million, constituting 8.3 per cent of the public issue proceeds, will be dedicated to the purchase of delivery trucks. This acquisition is essential for bolstering the logistics capabilities required to service an expanding network of stores and potentially support new initiatives like "99 Bulksales."
Upgrades and Debt Reduction

Furthermore, RM47.6 million will be used for upgrading existing outlets and procuring energy-efficient equipment, while RM45.0 million is designated for the repayment of existing group borrowings. The remaining RM23.4 million will be used to cover listing expenses associated with the Initial Public Offering.

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How will 99 Speed Mart use the RM600 million from its public issue?

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