KUALA LUMPUR (Jan 12): Furniture fittings and hardware retailer TeamStar Bhd has signed an underwriting agreement with TA Securities Holdings Bhd, ahead of its proposed listing on the ACE Market of Bursa Malaysia.

Under the agreement, TA Securities will underwrite 40 million new shares earmarked for the Malaysian public, as well as 16 million existing shares offered for sale, according to TeamStar 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 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 out to approved Bumiputera investors via private placement.

The offer for sale involves 16 million shares allocated to eligible directors, employees and contributors, 48 million shares via private placement to selected investors, and eight million shares to identified Bumiputera investors.

TeamStar executive vice-chairman and chief executive officer Tan Lee Kueng said the underwriting agreement reflects TA Securities' confidence in the group and takes it closer to its planned listing.

"This comes at an opportune time as we are ready to take advantage of the vast development opportunities in the home improvement industry in Malaysia,” he said.

TeamStar filed its draft prospectus in July 2025, seeking to raise funds to expand its retail footprint and warehouse capacity nationwide.

The Puchong-based group currently operates 28 outlets selling furniture fittings, home improvement organisers, door accessories and general hardware, and plans to add 10 more outlets, including its first presence in Sabah and Sarawak.

Proceeds from the IPO have also been earmarked for the acquisition and renovation of warehouses, as two of its six existing facilities are already operating at over 80% capacity. The remainder of the proceeds will be used for working capital, partial repayment of bank borrowings and listing expenses.

For the financial year ended Dec 31, 2024 (FY2024), TeamStar recorded a net profit of RM16.85 million on revenue of RM130.22 million, with 57.85% derived from its retail segment and the rest 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 also acting as TeamStar’s principal adviser, sponsor, sole underwriter and sole placement agent for the IPO.

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