Synergy House Goes Public

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Synergy House Berhad, a leading cross-border e-commerce seller and furniture exporter of ready-to-assemble (RTA) home furniture, has launched its initial public offering (IPO) prospectus in preparation for its upcoming listing on the ACE Market of Bursa Malaysia Securities Berhad.
The IPO is expected to raise RM34.4 million by issuing 130.0 million new shares at an IPO price of RM0.43 per share.
This will be used to support the Group’s future growth and expansion plans, with a significant portion allocated to purchasing inventories for the proposed e-commerce fulfilment centre in Muar, Johor, and overseas e-commerce fulfilment centres.
According to the Executive Director of Synergy House, Tan Eu Tah, the IPO will enable the Group to fuel its future growth and expansion plans by tapping into the equity capital market for future fund raising. Furthermore, the recognition gained through the listing status will enhance the company’s reputation and attract new employees while expanding its customer base.
Synergy House executive director Teh Yee Luen expressed his enthusiasm about the transformative experience of leveraging e-commerce, which has enabled the Group to gather valuable insights on consumer preferences.
The Group intends to allocate funds to purchase inventories for its B2C segment and expand its B2C sales through third-party e-commerce platforms and new markets.
The IPO exercise is managed by Kenanga Investment Bank Berhad, acting as the Principal Adviser, Sponsor, Underwriter, and Placement Agent.
The listing on the ACE Market of Bursa Malaysia is scheduled for 1st June 2023, following the successful completion of the IPO exercise.
In terms of financial performance, the Group has experienced substantial growth in revenue, with registered revenue of RM111.5 million, RM122.9 million, RM184.3 million, and RM194.1 million for the financial years ended Dec 31 (FY) 2019, FY 2020, FY 2021, and FY 2022, respectively.
The B2C segment has been a significant contributor to this growth, registering a compound annual growth rate of 192.17 per cent from FY 2019 to FY 2022, with B2C sales increasing from RM1.99 million to RM49.63 million over the same period.
In conclusion, Synergy House Berhad’s IPO prospectus launch marks a significant milestone in the company’s journey towards achieving its growth and expansion objectives.
The funds raised will enable the company to invest in inventories, repay borrowings, and expand its business-to-consumer segment while also enhancing its reputation in the market.
With a track record of consistent revenue growth and a focus on leveraging e-commerce, the Group is poised for success in its upcoming listing on the ACE Market of Bursa Malaysia Securities Berhad.

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