CUCKOO International (MAL) Berhad (“CUCKOO Malaysia” or “the Company”), a Healthy Home Creator dedicated to fostering healthy lifestyles for its customers through its home appliances, household goods, skincare, nutritional food products and home care services, has entered into an underwriting agreement with RHB Investment Bank Berhad (“Managing Underwriter”) and AmInvestment Bank Berhad (together with RHB Investment Bank Berhad, the “Joint Underwriters”) in connection with its initial public offering (“IPO”).
The Company will undertake an IPO of up to 365,364,000 ordinary shares in conjunction with its listing on the Main Market of Bursa Malaysia Securities Berhad. The IPO includes a public issue of 143,280,000 new shares (“Issue Shares”), representing 10.0% of the Company’s enlarged issued share capital.
The Managing Underwriter and Joint Underwriters will underwrite the retail offering of 42,984,000 Issue Shares, representing approximately 3.0% of the Company’s enlarged issued share capital. A total of 28,656,000 Issue Shares will be made available for application by the Malaysian public through balloting, of which 50.0% will be set aside for Bumiputera investors, including individuals, companies, societies, co-operatives and/or institutions. The remaining 14,328,000 Issue Shares will be made available for application by the Eligible Persons.
The IPO also involves an offer for sale of up to 222,084,000 existing shares (“Offer Shares”). Of these, up to 179,100,000 Offer Shares will be allocated to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (“MITI”), whereas 100,296,000 Issue Shares and up to 42,984,000 Offer Shares will be allocated to Malaysian and foreign institutional and selected investors (other than Bumiputera investors approved by MITI) and foreign institutional and selected investors outside the United States in reliance on Regulation S.
Proceeds from the IPO will be utilised for funding product purchases for expansion of rental business, repayment of bank borrowings, capital expenditure for the opening of ‘Brandshops’ and upgrading of IT systems, expansion of Singapore business, as well as estimated listing expenses.
The Company is principally involved in the trading and rental of home appliances, mattresses and furniture, trading of beauty care products, provision of home care services, and investment holding activities. The Company is the sole and exclusive distributor of CUCKOO-branded products in Malaysia, Singapore, and Brunei. The Company is dedicated to fostering healthy lifestyles for its customers through home appliances, household goods, skincare and nutritional food products as well as home care services across four business segments, namely, CUCKOO-branded, CUCKOO Co-Created, WonderLab and WonderDewi, and WonderKlean.
“We are truly humbled to announce this significant milestone, made possible by the underwriting agreement entered into with our Managing Underwriter and Joint Underwriters. This achievement represents our longstanding commitment to empowering customers by seamlessly integrating wellness into their homes. Through a diverse range of quality, innovative, and affordably priced products and services, we strive to make healthier lifestyles accessible to all Malaysians, regardless of their background.”
“We believe the IPO will further strengthen our business, enabling us to expand our reach and enhance our ability to serve communities across the nation. As a Healthy Home Creator, we remain dedicated to creating a holistic wellness ecosystem that enriches lives and ensures wellness is within reach for everyone,” said Hoe Kian Choon, Non-Independent Executive Director and Chief Executive Officer of CUCKOO Malaysia.
Kevin Davies, Chief Executive Officer / Managing Director of RHB Investment Bank Berhad said, “We are honoured to support CUCKOO Malaysia as they take a significant step forward in their journey towards a successful IPO. This collaboration reflects our unwavering commitment to empowering high-potential companies, unlocking new growth opportunities, and driving long-term value creation. CUCKOO Malaysia has established a strong and resilient business model, and its strategic expansion plans in Malaysia reflect its clear ambition to scale regionally and strengthen its market leadership. As they embark on this exciting growth phase, our extensive experience in capital markets positions us well to provide strategic insights and financial expertise necessary to navigate this pivotal moment, while reaffirming RHB Investment Bank’s commitment to offering innovative investment banking solutions that drive success for our clients. We look forward to continuing our collaboration with CUCKOO Malaysia as they take this momentous step towards a new chapter of growth and success.”
RHB Investment Bank Berhad is the sole principal adviser, joint global coordinator, joint bookrunner, managing underwriter, and joint underwriter for the IPO; whilst AmInvestment Bank Berhad is the joint global coordinator, joint bookrunner, and joint underwriter for the IPO.
