99 Speed ​​Mart IPO crowns polio survivor as Malaysia’s newest billionaire

Today, the 60-year-old was named a billionaire after his company 99 Speed ​​​​Mart Retail Holdings Bhd went public in Kuala Lumpur.

The $531 million IPO is Malaysia’s largest in seven years. At an IPO price of 1.65 ringgit ($0.38) per share, Lee’s fortune is around $3.3 billion, in response to the Bloomberg Billionaires Index. The stock rose as much as 15 percent on Monday.

The listing cements Kuala Lumpur’s position because the busiest IPO location in Southeast Asia this 12 months and shows investor optimism concerning the country’s growth potential. The company’s shares are seen as a possibility to extend its presence within the Consumer goods sector in an economy that is anticipated to grow by as much as 5% this 12 months.

“It comes at a crucial time for both Malaysia’s IPO landscape and Southeast Asia’s capital markets,” said Mohit Mirpuri, senior partner and fund manager at Singapore-based SGMC Capital Pte Ltd. “This could improve market sentiment and position Malaysia as a major player in regional IPOs,” he said.

Small shop empire

Lee was born in 1964 in Klang, certainly one of the various cities between Kuala Lumpur and the Strait of Malacca. His father, a construction employee, and his mother, a street vendor, had eleven children and will only afford to send Lee to highschool for six years.

His first retail business – this street stall – was born out of necessity. As a baby, he contracted polio and lost the usage of his legs permanently.

“Because of my physical limitations, no one would hire me,” he told Forbes in 2012. “I have to help myself.”

Lee opened a food market in 1987 and ten years later he operated eight stores under the name Pasar Mini 99, where his wife, Ng Lee Tieng, 44, began her profession as purchasing manager in 1997. The couple were sole owners of the corporate until its IPO.

Today, the chain is the most important of its kind in Malaysia and, in response to its stock exchange prospectus, holds a market share of 40 percent within the minimarket segment and almost 12 percent in the general food retail sector.

“Lee’s journey is an inspirational example for small business owners and shows that with determination, perseverance and a customer-centric approach, it is possible to build a business even from humble beginnings,” said SGMC’s Mirpuri.

Lee stays CEO of the corporate, with the 99 Speed ​​Mart chain, together with dividend income and stock sales, accounting for the vast majority of his net price.

He also holds stakes in several owner-managed firms, including the only real Malaysian franchisor of Burger King restaurants. Last 12 months, he was also briefly certainly one of the most important individual shareholders in Alliance Bank Malaysia Bhd., with a stake of around 5 percent, in response to regulatory filings.

Bullish market

As the FTSE Bursa Malaysia KLCI stock index heads for its best 12 months since 2010, stocks are returning to highs after years of sluggish growth.

The listing of 99 Speed ​​​​Mart attracted 14 major investors, including abrdn Asia Ltd. and UOB Asset Management (Malaysia).

About 28 percent of the IPO proceeds will go to the corporate, which plans to establish latest outlets and distribution centers, buy delivery trucks and repay loans, in response to the prospectus. The company reported a profit after tax of 133.2 million ringgit on revenue of two.4 billion ringgit in the primary three months of 2024.

The mini-market operator’s slogan “Near n’ Save” is a component of a business model that focuses on convenience and easy accessibility for consumers, said Arun George, an analyst at Global Equity Research who publishes on the Smartkarma platform.

The scale of the corporate’s operations creates a barrier to entry and expansion for other players within the mini-market in Malaysia and “hinders their ability to compete effectively,” he said.