Malaysian retail group Macrovalue, which owns the Cold Storage, Giant and Mercato operations in Malaysia, is targeting an initial public offering (IPO) on Bursa Malaysia within three years.
This follows its acquisition of all Cold Storage and Giant outlets in Singapore from DFI Retail Groupin March this year.
Macrovalue co-owner Datuk Andrew Lim Tatt Keong said the group "will focus on value creation in the lead-up to the planned listing", which will potentially position it as one of the largest retail operators to go public locally.
“The IPO is down the road and certainly within our radar — it will take about three years. In the meantime, we will focus on building value through cost optimisation, expanding our product suite and enhancing our IT infrastructure,” he told a press conference on Friday. Lim is also the executive deputy chairman of GCH Retail Group.
The specific valuations are yet to be determined, the group noted, while expecting to grow its combined revenue to RM7 billion by the time of listing — up from the current RM5.6 billion, comprising RM2 billion from Malaysia and S$1 billion (RM3.6 billion) from its Singapore operations.
"Bursa is very active right now. Last year was a record year for IPOs, and we believe Malaysia is a good platform to raise capital,” Lim added.
See also: Yangzijiang Financial targets spin off listing of marine investment platform within 12 months' time
The plans come amid renewed investor appetite for retail and chain-store operators. In 2024, 99 Speed Mart Retail Holdings Bhd raised RM2.36 billion in one of the largest listings of the year. Meanwhile, Eco-Shop Marketing Bhd is slated to debut on the Main Market on May 23, potentially raising up to RM1 billion.
Talk for KK Supermart and Superstore Sdn Bhd to be a listed entity is "also coming online very soon this year", Lim noted.
“There is still work to be done. Tenant completion [from the acquisition] is expected by September. After that, we will begin strategising on cost, IT and the product suite. This will be a million-dollar listing when it comes to the market,” Macrovalue co-owner Datuk Gary Yap Keng Fatt said. Yap is the managing director of GCH Retail Group.
See also: CDL 'would like to explore' UK REIT IPO again: CEO Sherman Kwek
RM500 mil financing loan secured from Affin Bank
Macrovalue recently acquired the Singapore operations of Giant and Cold Storage from DFI Retail Group in a S$125 million deal, which was partly financed by a RM500 million facility from Affin Bank Bhd via a special purpose vehicle, Macrovalue 6.
Of the total facility, a portion has been earmarked for working capital and store expansion. Yap said the group plans to open six new Cold Storage outlets in Singapore and has signed on 12 new stores in Malaysia.
It also aims to increase the number of Giant hypermarkets in Malaysia to 100, up from 96 currently.
The acquisition is part of Macrovalue’s strategy to integrate its regional operations, leveraging synergies in procurement, logistics, and its product mix, while also introducing more Malaysian products to Singapore and vice versa to improve margins.
Since acquiring GCH Retail (Malaysia) Sdn Bhd — the former operator of Giant and Cold Storage — in 2023, Macrovalue has embarked on a multi-year transformation plan. This includes rebranding some Giant outlets into “Giant Malls” and recalibrating its merchandise mix to boost traffic and profitability.
Affin Bank president and group chief executive officer Datuk Wan Razly Abdullah said the financing arrangement reflects the bank’s confidence in Macrovalue’s strategic trajectory.
“Singapore’s grocery retail market was valued at US$6.6 billion in 2023 and is expected to grow to US$7.7 billion over the next five years. Affin is proud to power this transformative journey through structured, high-impact financing solutions,” he said.
