KUALA LUMPUR (Jan 12): Furniture fittings and hardware retailer TeamStar Bhd has signed an underwriting agreement with TA Securities Holdings Bhd, marking a key step towards its proposed listing on the ACE Market of Bursa Malaysia.
Under the agreement, TA Securities will underwrite 40 million new shares allocated to the Malaysian public, as well as 16 million existing shares offered for sale, TeamStar said in a statement on Monday.
TeamStar is targeting a listing by the first quarter of 2026, with an enlarged issued share capital of 800 million shares.
The initial public offering (IPO) comprises a public issue of 132 million new shares and an offer for sale of 72 million existing shares, representing a combined 25.5% stake in the company. Of the new shares, 40 million will be offered to the Malaysian public, while the remaining 92 million will be placed with approved Bumiputera investors via private placement.
The offer for sale includes 16 million shares for eligible directors, employees and contributors, 48 million shares via private placement to selected investors, and eight million shares allocated to identified Bumiputera investors.
Executive vice-chairman and chief executive officer Tan Lee Kueng said the underwriting agreement reflects TA Securities’ confidence in the group and brings it closer to its planned listing.
“This comes at an opportune time as we are ready to capitalise on the strong growth opportunities in Malaysia’s home improvement industry,” he said.
TeamStar filed its draft prospectus in July 2025, with plans to use the IPO proceeds to expand its retail network and warehouse capacity nationwide.
The Puchong-based group currently operates 28 outlets selling furniture fittings, home improvement organisers, door accessories and general hardware. It plans to open 10 additional outlets, including its first stores in Sabah and Sarawak.
Funds raised will also be used to acquire and renovate warehouses, as two of its six existing facilities are operating at over 80% capacity. The remaining proceeds will go towards working capital, partial repayment of bank borrowings and listing expenses.
For the financial year ended Dec 31, 2024 (FY2024), TeamStar posted a net profit of RM16.85 million on revenue of RM130.22 million, with 57.85% derived from its retail segment and the remainder from trading and value-added services.
Founded in 1996, TeamStar is a family-managed business led by Tan, with his son Tan Jian Wei serving as chief financial officer.
TA Securities is acting as TeamStar’s principal adviser, sponsor, sole underwriter and sole placement agent for the IPO.