PETALING JAYA: Wheelchair-bound Lee Thiam Wah (
pic), the founder of the ubiquitous 99 Speedmart convenience stores, is set to take his place among Malaysia’s richest tycoons when 99 Speed Mart Retail Holdings Bhd is listed on Monday.
Even before his company debuts on Bursa Malaysia’s Main Market on Sept 9, Forbes has already listed Lee, 60, as having a net worth of US$2.8 billion (RM12.1 billion).
This would put him ahead of Genting Group chairman Lim Kok Thay (net worth US$2.1 billion/RM9.9 billion), who is in ninth position in Forbes’ Malaysia’s 50 Richest list, and just behind Sunway Group founder Jeffrey Cheah (US$3 billion/RM12.9 billion) at the No 8 spot.
At the initial public offering (IPO) price of RM1.65 per share and based on its enlarged issued share capital of 8.4 billion shares, the company would have a market capitalisation of RM13.86 billion.
Its valuation will undoubtedly be much higher if the shares rise above the IPO price post-listing as it is widely expected.
Rags-to-riches
If there is a perfect rags-to-riches story, Lee’s journey must surely be it. His story of overcoming physical disability and adversity to claim a spot among the Top 10 of Malaysia’s richest individuals is certainly inspiring.
Life dealt him what seemed to be a crippling blow when he contracted polio as an infant, taking away the use of his legs. Unlike many tycoons born with a silver spoon in their mouths, Lee, who has 10 siblings, came from humble roots.
His father was a construction worker while his mother was a hawker. They were only able to support his education up until primary school.
As a teenager, instead of going to secondary school, Lee decided to start his entrepreneurial journey by selling snacks by the roadside.
Eventually, he saved enough money to start a sundry shop in 1987 at the age of 23. Pasar Raya Hiap Hoe, a typical Malaysian mom and pop sundry shop, was located in the neighbourhood of Tepi Sungai, Klang.
Some years later, he sold the shop and the funds were used to open his first mini-mart – Pasar Mini 99 – in Klang Utama in 1992. By the late 1990s, the business had grown to eight outlets in Klang.
This foray into the mini-mart business provided Lee with valuable insight into the grocery store landscape, building the foundation for his future convenience store empire.
Between 2000 and 2003, the stores underwent another rebranding to 99 Speedmart as Lee adopted an intensive expansion strategy.
The rest is history as 99 Speedmart grew to become a fixture in most Malaysian neighbourhoods. Its stores fill a niche in the grocery retail chain between higher value grocery chains, such as Jaya Grocer and Village Grocer, and the purchase of groceries online.
The company, 99 Speed Mart, now has over 2,650 outlets nationwide, targeting 250 new outlets annually. The management has indicated the potential to expand to up to 5,000 outlets nationwide before market saturation sets in.
In an interview, Lee revealed he picked the number 99 as it signifies the nature of imperfection in this world.
We chose the number 99 because it implies that even though we are not perfect, we still aim to offer our customers the best services and products we have at a competitive price, he explained.
Biggest IPO in seven years
99 Speed Mart’s listing will be Malaysia’s biggest initial IPO in seven years, raising up to RM2.36 billion, the most since Lotte Chemical Titan Holding Bhd’s listing in 2017 when it grossed RM3.77 billion.
99 Speed Mart’s IPO involves an offer for sale of 1.028 billion existing shares and a public issue of 400 million new shares.
Lee, the group’s CEO, and his wife Ng Lee Tieng will net a whopping RM1.7 billion from the sale of 1.028 billion of their shares.
His net worth is anticipated to increase over time if 99 Speed Mart follows a similar trajectory to Mr DIY Group (M) Bhd, the last major retail chain operator to be listed.
Listed in 2020, Mr DIY raised RM1.5 billion from its listing. At the IPO price of RM1.60, the company was valued at about RM10 billion. Its shares closed at RM2.05 on Friday, up 75% from its IPO price, valuing the group at RM19.38 billion.
Meanwhile, Mercury Securities has assigned a fair value of RM1.99 to 99 Speed Mart, a 21% premium to its IPO price of RM1.65.
99 Speed Mart dominates the mini-market industry with a 40.1% market share and holds an 11.6% market share in the overall grocery retail sector based on 2023 revenue, it said in a recent note.
For the first half ended June 30 (FY2024), the group’s net profit grew by 41.7% to RM258.87 million, with revenue rising by 8.6% to RM4.84 billion. - FMT
