KK Supermart eyes RM3bil valuation for IPO

Operator of Malaysia’s second largest minimarket chain is aiming to be listed in the second half of 2026.

KK Supermart’s listing plan was put on hold after it found itself mired in controversy in early 2024.

PETALING JAYA:

 KK Supermart and Superstore Sdn Bhd’s listing plan is back on track after it was put on hold following the uproar caused when socks bearing the word “Allah” were sold at one of its KK Mart stores.

A Dow Jones Newswires report today said the initial public offering (IPO) would value the convenience store chain operator at around US$750 million or nearly RM3 billion.

Slated for the second half of 2026, the IPO is likely to account for over 25% of its equity value, it quoted sources familiar with the matter.

The company founded by Chai Kee Kan (KK Chai) operates more than 900 outlets in the country, and in India and Nepal.

Chai, who is the chairman, is reported to have a 95% stake in the company while his wife Loh Siew Mui, also a director, holds the remaining 5%.

KK Supermart is the country’s second largest minimarket chain operator after 99 Speed Mart Retail Holdings Bhd. The latter has over 3,000 stores throughout the country.

However, the estimated RM3 billion valuation for KK Supermart would pale in comparison to 99 Speed Mart’s current market capitalisation of RM33.6 billion.

The company co-founded by Lee Thiam Wah and his wife Ng Lee Tieng was listed in September 2024 at an IPO price of RM1.65 a share, valuing the company at RM13.8 billion.

99 Speed Mart closed at RM4 today, a 242% gain from its IPO price. Its shares have soared 80% over the past one year.

Socks controversy

KK Supermart first announced its IPO plan in May 2023 but the process was stalled following the socks controversy which erupted in March 2024, according to news reports.

KK Mart was boycotted by many patrons and the company along with Chai and Loh were also charged in court. Several KK Mart outlets were subject to petrol bomb attacks.

In July 2024, KK Supermart and its supplier Xin Jian Chang Sdn Bhd were fined RM60,000 each after pleading guilty to an offence under Section 298 of the Penal Code for wounding religious feelings.

However, Chai, Loh and three directors of Xin Jian Chang were acquitted of intentionally wounding the religious feelings of others after the prosecution withdrew its case.

KK Supermart’s planned IPO comes amidst bullish investor sentiment, with the benchmark FBM KLCI hitting seven-year highs.

Bursa Malaysia has a pipeline of listings this year that includes high-profile names such as chip designer SkyeChip Bhd and hospital operator Sunway Healthcare Holdings Bhd.

Chai will undoubtedly be hoping that KK Supermart post-listing will scale similar heights attained by its peer 99 Speed Mart. - FMT