MST Golf Group Berhad (formerly known as MST Golf (Asia) Sdn Bhd) (“MST Golf” or the “Company”), the largest chain of golf specialty retailer of golf equipment in Malaysia, today signed an underwriting agreement with RHB Investment Bank Berhad (“RHB Investment Bank”) in conjunction with its proposed initial public offering (“IPO”) and listing on the Main Market of Bursa Malaysia Securities Berhad (“Bursa Securities”).
The IPO entails the offering of 228.0 million ordinary shares in MST Golf (“Shares”) (“IPO Shares”), comprising a public issue of 160.0 million new Shares (“Issue Shares”) and an offer for sale of up to 68.0 million existing Shares involving:
- Institutional offering of up to 178.6 million IPO Shares to identified institutional and selected investors, including Bumiputera Investors approved by the Ministry of Investment, Trade and Industry, Malaysia (formerly known as Ministry of International Trade and Industry, Malaysia); and
- Retail offering of 49.4 million Issue Shares to the Malaysian public, independent non-executive directors of MST Golf, eligible employees of MST Golf and its subsidiaries (“MST Golf Group”) and persons who have contributed to the success of the MST Golf Group.
RHB Investment Bank will underwrite the 41.5 million Shares made available for the Malaysian public under the retail offering tranche.
MST Golf, the largest chain of golf specialty retailer in Malaysia, owns and operates 42 retail outlets comprising 35 outlets in Malaysia and 7 outlets in Singapore, where it offers a one-stop retail environment that specialises in providing high-quality golfing equipment comprising golf clubs, golf balls and accessories and golf apparel from an extensive range of brands to meet the comprehensive needs of its customers. In its wholesale and brand distributorship business, MST Golf serves clients mainly in Indonesia.
Ng Yap, Executive Director and Group Chief Executive Officer of MST Golf said, “The signing of the underwriting agreement marks a significant milestone for us ahead of our listing on the Main Market of Bursa Securities. Since we began operations, we have expanded our presence from being solely in the Malaysian market into the wider Southeast Asia markets. We have a sound business model that has withstood the challenges of the Covid-19 pandemic, as we recorded a compounded annual growth rate of 8.3% in our Group revenue between 2019 and 2021, with a resilient gross profit margin of approximately 40.0% during the same period.
Our strength in providing a unique, one-stop golf retail and service environment enables us to cater to the needs of different target groups of consumers and creates a strong brand loyalty for our services. With our retail footprint spanning across Malaysia and Singapore, our IPO will help us accelerate our retail penetration in other golf markets in Southeast Asia, starting with Indonesia, Thailand and then Vietnam. The upcoming proposed joint venture with PT Sinar Eka Selaras is expected to pave the way for the regional expansion drive of our retail and online business in the country.”
PT Sinar Eka Selaras is a subsidiary of PT Erajaya Swasembada Tbk, a public company listed on the Indonesia Stock Exchange and is involved in the distribution and trading of telecommunication equipment, computer, and other electronic devices. PT Erajaya Swasembada Tbk is also involved in the distribution and retailing of sportswear.
MST Golf has received approval from the Securities Commission Malaysia to list on the Main Market of Bursa Securities on 18 April 2023. Barring any unforeseen circumstances, MST Golf is expected to launch its prospectus by the end of June 2023.
RHB Investment Bank Berhad’s Managing Director / Chief Executive Officer, Mr Ganesh Sabaratnam, said “MST Golf, with its unique golf specialty offerings, has continuously demonstrated commendable business resilience and delivered a solid financial performance, especially in recent years. We at RHB Investment Bank Berhad, are honoured to be given this opportunity to play a key role in the Company’s next-level growth so it can continue to champion the game in Southeast Asia.”
RHB Investment Bank is the principal adviser, sole underwriter, and sole placement agent for this IPO exercise.