Company: Teamstar Berhad

Date of Prospectus: 27 January 2026

Teamstar Berhad IPO: In-Depth Analysis, Financial Review, and Investment Outlook

Teamstar Berhad is launching its highly anticipated IPO on the ACE Market of Bursa Malaysia Securities, offering investors a unique opportunity to participate in Malaysia’s growing home improvement and hardware retail sector. This article provides a comprehensive, investor-focused analysis of the IPO’s structure, financials, use of proceeds, risk factors, and listing outlook based strictly on the official prospectus.

IPO Snapshot: Offering Structure and Key Details

Teamstar Berhad (IPO symbol not explicitly stated) is conducting an Initial Public Offering comprising 204,000,000 ordinary shares (25.50% of the enlarged share capital), at an offer price of RM0.26 per share. The post-IPO outstanding shares will be 800,000,000, resulting in a market capitalization of RM208 million at listing.

Use of Proceeds: Strategic Expansion and Growth

The IPO is clearly growth-driven, with the majority of proceeds allocated for network expansion and working capital.

No proceeds from the Offer for Sale will accrue to the company; these will go to selling shareholders.

Placement and Issuance Breakdown

The IPO shares are allocated across various categories, with a focus on broadening the shareholder base and fulfilling regulatory requirements.

40 million shares for the Malaysian public and 16 million for eligible persons are fully underwritten. Private placements are not underwritten but require irrevocable undertakings from investors.

Dividend Policy and Commitments

Teamstar Berhad currently does not have a fixed dividend policy. Dividend payments will depend on profits, working capital, and expansion needs. The company’s Shariah-compliant status is valid until the next review by the Shariah Advisory Council.

Investor Participation and Book Quality

Exact subscription and anchor investor data are not disclosed. However, the IPO structure—with substantial private placement tranches to MITI-approved Bumiputera investors and selected institutions—suggests a deliberate strategy to secure strong institutional participation and regulatory compliance. The public and eligible person tranches are fully underwritten, supporting confidence in subscription levels.

No greenshoe/over-allotment option is provided for this IPO.

Deal Parties and Structure

Principal Adviser, Sponsor, Underwriter, and Sole Placement Agent: TA Securities
Issuing House: AscendServ Capital Markets Services Sdn Bhd
Bursa Malaysia Securities is the listing venue.
No stabilization or over-allotment mechanism is in place. The prominent roles of TA Securities as sole adviser, underwriter, and placement agent underline a tightly coordinated offering.

Company Overview: Business Model, Products, and Market Position

Teamstar Berhad operates in the home improvement and hardware retail sector, managing a network of 29 outlets across Peninsular Malaysia as of the latest practicable date. The business model centers on:

• Retail sales of home improvement, hardware, and related products.
• Trading and value-added services recognized upon delivery of products to customers.
• Revenue generated from retail outlets and fulfillment of purchase orders in trading/value-added segments.

Revenue streams: Retail customer purchases at outlets; trading and value-added services via customer purchase orders.

Key geographies: Peninsular Malaysia, with planned expansion into Johor, Kedah, Pulau Pinang, Sabah, and Sarawak.

Competitive strengths: Established brands, reputation, expanding outlet network, and targeted expansion strategy.

Financial Health: Multi-Period Performance Review

The company has demonstrated consistent revenue and profit growth over the review period, with healthy margins and robust cash flows. Debt remains manageable, and the company is actively allocating IPO proceeds to further strengthen its balance sheet.

Management Team and Corporate Governance

Key management and board members:

• Tan Lee Kueng – Executive Director
• Ng Choon Tiong – Executive Director
• Ling Thik Ping – Independent Non-Executive Chairman
• Tan Poh Chan, Wong Ley Chan, Wong Wen Miin – Independent Non-Executive Directors

Further details on senior management, board practices, and their track records are available in the full prospectus.

Trends, Timing, and Market Environment

The home improvement sector in Malaysia is experiencing robust demand, driven by ongoing urbanization and rising living standards. Teamstar’s expansion into new geographies, including planned entry into East Malaysia, aligns with sector growth trends.

Key offer and listing dates:

• Application opens: 10:00 a.m., 27 January 2026
• Application closes: 5:00 p.m., 9 February 2026
• Balloting: 11 February 2026
• Allotment/transfer: 23 February 2026
• Listing: 25 February 2026

The listing comes amid a stable macroeconomic environment as described in the prospectus, with no adverse sector shocks reported.

Key Risk Factors

Investors should carefully consider these highlighted risks:

• Brand and reputation risk: Negative publicity could materially impact sales and supplier relationships.
• Supplier terms risk: Lack of long-term supplier contracts exposes Teamstar to adverse changes in commercial terms.
• Execution risk: The success of planned expansion (new outlets, warehouses) is not guaranteed, and implementation failures could impact financial results.
• Consumer trend risk: Inability to adapt to changing customer preferences could hinder future growth.
• Liquidity risk: No guarantee of an active, liquid market for the shares post-listing, with potential price volatility.
• Ownership concentration: Promoters will retain significant control (62.46% post-IPO), which may influence company direction.

Growth Strategy: Expansion and Operational Plans

Growth is at the core of Teamstar’s strategy:

• Set up 10 new retail outlets nationwide, targeting Johor, Kedah, Pulau Pinang, as well as Sabah and Sarawak, within 36 months.
• Establish new warehouses to support network expansion.
• Enhance product range and digital infrastructure.
• Allocate capital for working capital and debt reduction to support expansion.

Ownership and Lock-up Structure

Pre- and post-IPO shareholding structure:

• LK Vision – 51.13% post-IPO
• Promoters (collectively) – 62.46% post-IPO

Moratorium/lock-up:

• Specified shareholders are subject to a 6-month full lock-up, followed by another 6 months on 45% of original holdings, then staggered release (1/3 per annum) thereafter.

Valuation and Peer Comparison

No explicit peer comparison or sector price performance is provided in the prospectus.

IPO Allotment Result and Subscription Outcomes

Final subscription outcomes by tranche are not disclosed. However, the structure ensures a minimum 25% public spread with at least 200 public shareholders, as required by Bursa Malaysia.

Listing Outlook

Based strictly on disclosed financials, book structure, and deal terms, Teamstar Berhad’s IPO is positioned as a growth-driven, expansion-focused offer in a resilient sector with proven profitability and sound margins.

• Full underwriting of public and eligible tranches reduces downside risk of undersubscription.
• Significant institutional and MITI-approved investor allocation supports aftermarket stability.
• No greenshoe means price volatility may be higher post-listing, but the tight deal structure, financial growth, and sectoral trends favor a positive debut.
• Valuation of 11–13x P/E is in line with sector norms for growth companies (inferred from prospectus).

The IPO appears worth subscribing for investors seeking exposure to Malaysia’s expanding home improvement market. Based on fundamentals, a first-day trading price range of RM0.26–0.30 (flat to modest premium) appears reasonable, with the potential for further upside if sector sentiment remains strong.

Prospectus Access

For more information, investors can access the prospectus at: www.bursamalaysia.com

How to Apply

Applications open from 10:00 a.m., 27 January 2026, and close at 5:00 p.m., 9 February 2026. Applications can be made via participating brokers, banks, and electronic share application channels as listed by the issuing house and Bursa Malaysia. Details on eligibility and application steps are available at the Bursa Malaysia website above.