Bison Consolidated Berhad (Bison), an investment holding company, launched its Prospectus today at One World Hotel. Through its subsidiaries, Bison is involved in the business of press and convenience retailing under its main trade name of “myNEWS.com” and the launch of the Prospectus is pursuant to its initial public offering (IPO) of 80.62 million ordinary shares of RM0.20 each (IPO Shares) in conjunction with its listing on the Main Market of Bursa Malaysia Securities Berhad (Bursa Securities). The retail price of the IPO Shares is RM1.10 each (“Retail Price”), payable in full upon application and subject to refund of the difference between the final Retail Price and the Retail Price if the final Retail Price is less than the Retail Price. The final Retail Price will be equal to the institutional price provided that it will not exceed the Retail Price.
Bison is the second largest retail convenience store industry player in Malaysia with an estimated market share of 8.6% in terms of outlet numbers and 6.6% in terms of revenue in 2015 (Source: The IMR Report[1]). As at 10 February 2016, the Group’s network spans across a total of 255 outlets in Malaysia with 223 outlets carrying its main trade name of “myNEWS.com” and 24 outlets under the trade names of “newsplus”, “MAGBIT’, and “THE FRONT PAGE”. Bison also operates 8 outlets under the trade name of “WHSmith” within Malaysian international airports pursuant to an equal joint venture with WH Smith Travel Limited, an indirect wholly-owned subsidiary of WH Smith PLC (UK).
Bison’s public issue of 80.62 million IPO Shares encompasses: –
Institutional offering of 62,316,500 IPO Shares comprising: –
31,306,500 IPO Shares to Malaysian institutional and selected investors; and
31,010,000 IPO Shares to Bumiputera institutional and selected investors approved by the Ministry of International Trade and Industry.
Retail offering of 18,303,500 IPO Shares comprising: –
15,503,500 IPO Shares to the Malaysian Public; and
2,800,000 IPO Shares made available to the eligible directors, employees and persons who have contributed to the success of Bison and its subsidiaries (“Group”).
“We have plans to invest approximately RM50.00 million of our IPO proceeds to expand our network of outlets and enhance our existing outlets in order to meet the growing demands from our customers. We will also use RM14.45 million of this IPO proceeds to invest in business functions and our back-end operations to improve and establish nationwide logistics and IT capabilities to support our growing network and product base. About RM32.23 million of our IPO proceeds will be utilised as working capital to finance inventory stocking for our new and existing outlets as well as our other working capital requirements.” said Dang Tai Luk, the Group Managing Director during his speech earlier today.
“Being listed on Bursa Malaysia will be a major milestone for the Group. We have come a long way since the establishment of our first outlet in 1996,” Dang further commented.
CIMB Investment Bank Berhad is the Principal Adviser, Managing Underwriter and Sole Bookrunner.
INDICATIVE TIMETABLE
Event
Dates
Opening of the Institutional Offering
4 March 2016
Issuance of Prospectus / Opening of the Retail Offering
10:00 am 4 March 2016
Closing of the Retail Offering
5:00 pm 14 March 2016
Closing of the Institutional Offering
15 March 2016
Balloting of applications for IPO Shares offered under the Retail Offering
16 March 2016
Allotment of IPO Shares to successful applicants
25 March 2016
Listing of Bison Consolidated Berhad
29 March 2016
[1] The independent market research report prepared by Smith Zander International Sdn Bhd dated 22 February 2016 (“IMR Report”).