KUALA LUMPUR: Convenience store operator Bison Consolidated Bhd, which operates a chain of renowned retail press and convenience stores such as myNEWS.com, Newsplus, MagBit and The Front Page, and WHSmith outlets, is seeking a listing on the Main Market of Bursa Malaysia.

According to its draft prospectus on the Securities Commission website, Bison’s initial public offering (IPO) will involve the issue of 80.62 million shares, representing 26% of its enlarged issued and paid-up capital.

Out of the 80.62 million shares, 62.32 million shares, or 20.1% of its enlarged issued and paid-up share capital, will be allocated to institutional investors, whereby 31.31 million shares will be allocated to Malaysian institutional and selected investors, while the remaining 31.01 million shares will be allocated to bumiputera institutional investors and selected investors approved by the Ministry of International Trade and Industry.

The company’s IPO will also encompass the issue of 18.3 million shares to retail investors, representing approximately 5.9% of the enlarged issued and paid-up share capital of the company. Of this 18.3 million shares, 15.5 million IPO shares will be made available to the Malaysian public, of which 50% are reserved for subscription by bumiputera public, while 2.8 million IPO shares will be made available to eligible persons.

Bison said that the final retail price per share shall be determined after the institutional price per share is fixed on the price determination date, and will be equal to the institutional price per share. The company added that 63.3% of its IPO proceeds are expected to be utilised for capital expenditure, while 29% will go for working capital, and the remaining 7.7% for estimated listing expenses.

For the financial year ended Oct 31, 2014 (FY14), Bison reported a net profit of RM12.43 million, 30% lower than its FY13 net profit of RM17.86 million. Its FY14 revenue was RM182.41 million, 15.5% higher than its FY13 revenue of RM157.96 million. The company reported a cash position of RM8.09 million as at FY14, while its total bank borrowings as at FY14 stood at RM10.34 million.

As for its management, Bison is led by its managing director Dang Tai Luk, 55. Dang opened Bison’s first news stand under the name of MagBit on Dec 25, 1996, together with his wife Ling Chao. Since then, he has been instrumental in spearheading the strategic direction and growth of the company.

This article first appeared in digitaledge Daily, on August 11, 2015.