Company: Teamstar Berhad
Date of Prospectus: January 2026

Teamstar Berhad IPO: In-Depth Analysis Reveals Robust Growth, Financial Strength, and Promising Market Entry

IPO Snapshot

Teamstar Berhad’s IPO is set to attract significant investor attention with its strategic growth story, strong financials, and resilient market positioning in Malaysia’s home improvement sector.

• IPO Symbol: Not explicitly disclosed in prospectus.
• Offer Price: RM0.26 per share
• Total Offer Size: RM34.32 million (Gross proceeds from Public Issue)
• Number of Shares Offered: 132,000,000 new shares (Public Issue), 72,000,000 existing shares (Offer for Sale)
• Post-IPO Outstanding Shares: 800,000,000

Use of Proceeds:

• Set-up new retail outlets and warehouses: RM23.21 million (67.63%)
• Working capital requirements: RM4.65 million (13.54%)
• Repayment of bank borrowings: RM1.46 million (4.26%)
• Fees and expenses relating to listing: RM5.00 million (14.57%)

This allocation signals a growth-driven narrative, with major investments earmarked for expansion.

Placement and Issuance Breakdown

• Public Issue: 40,000,000 shares to Malaysian Public (at least 50% for Bumiputera investors)
• Private Placement: 92,000,000 shares to selected institutional investors (including Bumiputera investors approved by MITI)
• Offer for Sale: 72,000,000 existing shares placed privately to selected investors
• Employee Allocation: Eligible persons receive dedicated Pink Application Forms for subscription

Dividend Policy

Teamstar Berhad does not adopt a fixed dividend policy. Dividend payouts are at the discretion of the Board, based on available profits and excess funds not required for business expansion or working capital. Factors considered include cash levels, debt, retained earnings, and profitability. No explicit payout ratio or timetable is committed in the document [[168]].

Investor Participation and Book Quality

Private placement comprises 11.5% of enlarged share capital, targeting robust institutional participation. Allocation to Malaysian Public and MITI-approved Bumiputera investors broadens the shareholder base, supporting liquidity and first-day trading strength. No named anchor or cornerstone investors are disclosed; subscription levels by category are not stated.

Book quality assessment:

• Wide retail and institutional allocation
• Significant private placement component
• Underwriting agreement ensures full subscription for any undersubscribed shares
• Minimum 25% public spread targeted with at least 200 shareholders

These factors imply a strong, liquid first-day performance, strictly based on prospectus content.

Deal Parties and Structure

• Principal Adviser, Sponsor, Sole Underwriter, Sole Placement Agent: TA Securities
• Solicitors: Ong Eu Jin Partnership
• Auditors and Reporting Accountants: Baker Tilly Monteiro Heng PLT
• IMR: Protégé Associates Sdn Bhd

Underwriting Agreement: TA Securities underwrites 56,000,000 IPO shares at commission up to 3% of IPO price [[291]]. No explicit stabilization or greenshoe options are disclosed.

Based solely on the roles and reputations outlined in the prospectus, the presence of established deal parties supports listing-day performance.

Company Overview

Teamstar Berhad operates as an investment holding company. Its subsidiaries are engaged in:

• Retail sale of furniture fittings, general hardware, kitchen and home appliances
• Trading of furniture fittings
• Value-added mixing and sale of coatings and solvents

Revenue Streams:

• Retail segment: Direct sales to individual customers at outlets (cash basis dominant)
• Trading and value-added segment: B2B sales to furniture manufacturers and contractors

Key Brands: Reno, Hauss, A’Lois, E’Lois, Bramah, team, DGTango, Eracoat, Best-Can, Bee’s Chem, Bull Chem

Customer Segments: Retail consumers, furniture manufacturers, contractors

Geographies: Malaysia; nine warehouses support business operations [[26]], plans underway for further expansion.

Industry Definition: Home Improvement Industry in Malaysia. Size and growth rates not explicitly quantified in prospectus [[29]].

Financial Health

Teamstar Berhad demonstrates consistent revenue growth, margin expansion, and robust cash flow generation.

Cash Flow: Positive net cash from operations every period; working capital remains strong with a current ratio of 2.25x as at 30 September 2025. Minimal credit risk due to cash-based sales [[151]]. Debt levels remain manageable, with gearing dropping to 0.16x post-IPO and utilization of proceeds [[151]].

Market Position and Competitive Advantages

Strengths:

• Established local brands and high customer recognition
• Cash-centric retail model reduces credit risk
• Expanding warehouse and retail footprint
• Strong relationships with local partners experienced in the home improvement sector
• Multi-brand strategy and diversified product portfolio

Management Team

• Tan Lee Kueng: Promoter, substantial shareholder, Executive Vice Chairman & Group CEO – over 40 years’ experience in construction and business management [[42]]
• Ng Choon Tiong: Executive Director and Managing Director, Teamstar Solutions Group
• Tan Jian Wei: CFO
• Yeoh Chuen Teik: COO
• Independent Non-Executive Directors: Ling Thik Ping, Tan Poh Chan, Wong Ley Chan, Wong Wen Miin

Directors’ and Key Senior Management shareholdings: Promoters and their related parties collectively hold over 51% of post-IPO shares through LK Vision [[41]], ensuring aligned interests.

Trends, Timing, and Environment

Sector Trends: Malaysia’s home improvement industry continues to expand, supported by urbanization, rising consumer demand, and continuous housing development [[29]]. Teamstar’s multi-brand and expansion-driven approach positions it well to capture sector growth.

Timing:

• Application period: 27 January 2026, 10:00am – 9 February 2026, 5:00pm [[293]]
• Listing date not explicitly stated

Economic/Market Environment: No material adverse government, fiscal, or monetary impact noted in recent periods [[165]]. Inflation and FX exposure have been minimal, with net positive FX gains reported [[167]]. Commodity prices have not directly affected results, but are monitored closely.

Recent Developments: Internal restructuring, acquisitions, and warehouse expansion plans have been executed or are underway. No material litigation or contingent liabilities as at LPD [[160]].

Market Conditions: Based on sector prospects, recent financial performance, and risk controls, conditions appear favorable for this IPO.

Risk Factors

• Brand and Reputation: Dependence on proprietary brands for customer retention and growth
• Supplier and Customer Concentration: Not quantified, but mitigated by diversified brands and segments
• Commodity and FX Exposure: Monitored, with price increases passed to customers where possible [[168]]
• Legal/Regulatory: No material litigation or regulatory risk disclosed [[160]]
• Related-Party Transactions: Robust policies and Board oversight to prevent conflicts of interest and ensure fairness [[76]], [[111]]
• Single Product/Geography Risk: Primarily Malaysia-based; expansion plans may mitigate concentration risk
• Credit Risk: Minimal due to cash-basis sales; low impairment losses [[151]]

Growth Strategy

• Expansion: RM23.21 million allocated for new retail outlets and warehouses, targeting 10 new outlets within 36 months [[26]], [[160]]
• Product Range: Plans to expand SKU count and inventory through additional storage capacity
• Local Partnerships: Leverage local partners for operational management and customer insight [[26]]
• Capex Pipeline: Approved but not contracted capital commitments total RM23.21 million [[160]]

Ownership and Lock-ups

Pre-IPO Shareholding: Promoters and substantial shareholders (LK Vision, Tan Lee Kueng, Ng Choon Tiong, Ng Choon Sin, Yeoh Baby, Tan Jian Wei) collectively control over 60% before IPO [[41]], reducing to 51.13% post-IPO through LK Vision [[41]], [[47]].

Post-IPO Shareholding: Promoters’ effective control via LK Vision remains above 51%. No explicit lock-in periods or ESOPs disclosed, but employee allocation is available through Pink Application Forms [[295]].

Valuation and Peer Comparison

Valuation metrics such as P/E, P/B, EV/EBITDA, CAGR, net margin, ROE, ROA, dividend yield are not explicitly disclosed or compared to peers in the prospectus. No peer companies or concurrent IPOs mentioned. No sector performance table provided.

Research and Opinions

No explicit analyst opinions, price targets, or covering institutions are disclosed in the prospectus.

IPO Allotment Result

Final subscription outcomes by tranche are not disclosed. Balloting procedures and basis of allocation outlined, ensuring fair distribution and public spread [[297]].

Listing Outlook

Based strictly on prospectus facts:

• Strong underlying financials, growth-focused use of proceeds, and robust risk management suggest the IPO is attractive for investors seeking exposure to Malaysia’s home improvement sector.
• Liquid trading base supported by broad retail and institutional allocation and public spread requirements.
• Minimal credit risk, positive cash flows, and manageable gearing enhance investment appeal.
• First-day trading is likely to be strong, with price performance expected to trade above or at the offer price of RM0.26, barring unforeseen market volatility.

Overall, the IPO appears worth subscribing based on disclosed figures, with solid prospects for listing-day strength and medium-term growth.

Prospectus Access

Website to obtain the prospectus: www.bursamalaysia.com

How to Apply

• Application Channels: Brokers, banks, e-IPO platforms, ATMs of participating banks, and internet platforms of participating financial institutions [[293]], [[296]], [[297]]
• Application Window: 27 January 2026, 10:00am – 9 February 2026, 5:00pm
• Eligibility: Malaysian citizens (≥18 years), local corporations, institutions, and selected eligible persons; must have a CDS account in own name [[295]]
• Minimum Application: 100 shares or multiples thereof; only one application per category per applicant [[294]]
• Procedures: Complete the relevant application form, pay RM0.26 per share, submit before the closing date. Refunds for unsuccessful applications made via stated methods [[299]]