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

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

The $531 million initial public offering is Malaysia’s largest in seven years. At the IPO price of 1.65 ringgit ($0.38) per share, Lee’s fortune is about $3.3 billion, according to the Bloomberg Billionaires Index. Shares rose as much as 15% on Monday.

The listing cements Kuala Lumpur as Southeast Asia’s busiest market debut location this year and shows investor optimism in the nation’s growth potential. The company’s stock is seen as a way to build exposure to the consumer sector in an economy that is expected to expand by as much as 5 percent this year.

“This comes at a crucial time for both the Malaysian IPO landscape and the Southeast Asian capital markets,” said Mohit Mirpuri, senior partner and fund manager at Singapore-based SGMC Capital Pte Ltd . “This could boost market sentiment and position Malaysia as a key. player,” in the regional lists, he said.

Little shop empire

Lee was born in 1964 in Klang, one of the many towns that dot the stretch between Kuala Lumpur and the shores of the Straits of Malacca. His father, a construction worker, and his mother, a street vendor, had 11 children and could only afford to send Lee to school for six years.

His first retail business—that roadside stall—was born out of necessity. As a child he contracted polio and permanently lost the use of his legs.

“No one would hire me because of my physical limitation,” he told Forbes in 2012. “I have to help myself.”

Lee opened a grocery store in 1987 and a decade later ran eight stores under the name Pasar Mini 99, where his wife, Ng Lee Tieng, 44, started her career as purchasing manager in 1997 Until the IPO, the couple were the sole owners of the company.

Today, the chain is the largest of its kind in Malaysia, holding a 40% share in the mini-market segment and nearly 12% among all food retailers, according to the IPO prospectus.

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

Lee will remain the company’s chief executive officer. The 99 Speed ​​Mart chain makes up most of his net worth, along with cash collected from dividends and stock sales.

He also holds stakes in several closely held businesses, including the sole Malaysian franchisor of Burger King restaurants. Last year, he briefly emerged as one of the largest individual shareholders of Alliance Bank Malaysia Bhd., with a stake of about 5 percent, regulatory filings show.

Rising market

As the benchmark FTSE Bursa Malaysia KLCI share index heads for its best year since 2010, the quotes have bounced back after years of lackluster growth.

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

About 28 percent of the IPO proceeds will go to the company, which plans to set up new sales outlets and distribution centers, buy delivery trucks and repay loans, according to the prospectus. The company posted a profit after tax of 133.2 million ringgit on revenue of 2.4 billion ringgit in the first three months of 2024.

The mini-mart operator’s “Near n’ Save” slogan is part of a business model that emphasizes convenience and easy access for consumers, said Arun George, an analyst at Global Equity Research, which publishes on the Smartkarma platform.

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

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