Seven Convenience Bhd, a 7-Eleven convenience store chain operator in Malaysia, is offering up to 530.33 million shares in an initial pubic offering (IPO) that could be worth about RM700 million, a draft prospectus showed on Tuesday.
The IPO is expected before the end of the year and will be used to fund the company’s expansion and refurbishment of its stores, information technology systems and for working capital, the prospectus showed.
Controlled by Malaysian billionaire Tan Sri Vincent Tan, the company’s offer represents up to 43 per cent of its enlarged paid-up capital, of which 490.78 million shares or 39.8 per cent will be offered to institutional investors.
The balance of 39.55 million shares or 3.2 per cent will be allocated to retail investors. There is an over-allotment option of up to 74.03 million shares or 14 per cent of the IPO shares offered, the prospectus showed.
Seven Convenience, part of Berjaya Retail Bhd, is Malaysia’s largest convenience store chain with close to 1,500 outlets, according to its prospectus.
The company recorded revenue of RM1.58 billion and profit after tax of RM40.5 million in 2012, representing a compound annual growth rate of 9.7 per cent in revenue and 22.4 per cent in profit from 2010 before its parent company Berjaya Retail was delisted.
Seven Convenience attributed the growth in revenue to the increase in the number of stores and same-store sales. It said profit grew from an increase in commissions on its in-store services.
Tan, Malaysia’s tenth richest person according to Forbes, took Berjaya Retail private in 2011, nine months after the company was first listed on August 16, 2010, due to the dismal performance of the shares.
The company has given no information on pricing of the shares and did not provide any details on the size of the listing or a time frame for the IPO process.
Seven Convenience hired Maybank Investment Bank as the principal adviser, joint global coordinator, joint bookrunner, joint managing underwriter and joint underwriter for the listing. Joint global coordinator and joint bookrunner is UBS.
CIMB Investment Bank is the joint bookrunner and joint underwriter.-- Reuters