Synergy House Unveils IPO to Drive Growth in Furniture E-commerce, Eyes ACE Market Listing

Synergy House Berhad, a prominent cross-border e-commerce seller and furniture exporter specializing in ready-to-assemble (RTA) home furniture, has unveiled its prospectus for an initial public offering (IPO). The company aims to list on the ACE Market of Bursa Malaysia Securities Berhad, with the IPO expected to raise RM34.4 million. This injection of funds will support Synergy House’s future growth and expansion plans.

The IPO will involve the issuance of 130.0 million new shares at an IPO price of RM0.43 per share. The proceeds from the IPO will be allocated for various purposes, including purchasing inventories for the Group’s proposed e-commerce fulfillment center in Muar, Johor, and overseas countries. Additionally, funds will be used for acquiring racking systems and forklifts, e-commerce advertising and promotions, loan repayments, working capital, and listing expenses.

Mr. Tan Eu Tah, Executive Director of Synergy House, expressed his confidence in the IPO, stating, “With the global demand for furniture e-commerce projected to continue growing, our IPO will provide us with the means to fuel our future expansion plans and tap into the equity capital market for further fundraising. It will also enhance our reputation, attract new employees, and expand our customer base.”

Mr. Teh Yee Luen, also an Executive Director of Synergy House, highlighted the transformative impact of e-commerce on the company, allowing direct engagement with end-consumers and valuable insights into consumer preferences. He outlined plans to further develop the business-to-consumer (B2C) segment by utilizing a portion of the IPO proceeds to expand inventory and conduct advertising and promotions on third-party e-commerce platforms. The company aims to increase B2C sales by expanding to new markets and more e-commerce platforms.

Synergy House’s financial performance has demonstrated promising growth, with revenues of RM111.5 million, RM122.9 million, RM184.3 million, and RM194.1 million for the fiscal years ending in 2019, 2020, 2021, and 2022, respectively. The B2C segment, in particular, has shown significant growth, with sales increasing from RM1.99 million in 2019 to RM49.63 million in 2022, achieving a compound annual growth rate of 192.17%.

Kenanga Investment Bank Berhad serves as the Principal Adviser, Sponsor, Underwriter, and Placement Agent for the IPO exercise.

The anticipated listing date for Synergy House Berhad on the ACE Market of Bursa Malaysia is June 1, 2023.

15 May 2023

Author: Terry KS

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