KUALA LUMPUR: CUCKOO International (MAL) Berhad (“CUCKOO Malaysia” or “the Company”), a “Healthy Home Creator” dedicated to fostering healthy lifestyles through its home appliances, household goods, skincare and nutritional food products, and home care services, has unveiled its prospectus for its Initial Public Offering (“IPO”) today. This event coincides with its proposed listing on the Main Market of Bursa Malaysia Securities Berhad (“Bursa Securities”), scheduled for 30 April 2025.
The Company aims to raise an estimated amount of RM184.8 million through the issuance of 143,280,000 Issue Shares at the IPO Price. Based on the Company’s enlarged total number of 1,432,800,000 ordinary shares (“Shares”) upon its listing and the IPO Price, the expected market capitalisation of the Company will be approximately RM1.85 billion.
The initial price for the Issue Shares offered under retail offering of the Company’s IPO (“Retail Offering”) has been fixed at the Retail Price of RM1.29 per Issue Share. However, the final price per Issue Share to be paid by investors under the Retail Offering will only be determined and announced by the Company after a bookbuilding process, where institutional investors bid for shares to determine the institutional price to be paid under the institutional offering of the Company’s IPO (“Institutional Price”), and shall be the lower of the Retail Price and the Institutional Price (“Final Retail Price”). If the Final Retail Price is lower than the Retail Price, the price difference will be refunded to successful applicants, without interest. The Final Retail Price will be determined at a later date after the Institutional Price is fixed.
CUCKOO Malaysia plans to allocate 56.7% of its IPO proceeds to fund product purchases for the expansion of its rental business; 21.6% for repayment of bank borrowings; 2.7% for the opening of ‘Brandshops’; 3.0% for upgrading of IT systems; 5.4% for the expansion of CUCKOO International (S) Pte Ltd; and the remainder of the proceeds will be utilised for listing-related expenses.
Mr. Hoe Kian Choon, Non-Independent Executive Director and Chief Executive Officer of the Company said, “CUCKOO Malaysia began with a clear vision to inspire everyone to be #SAMASAMAHealthier, which means empowering our customers to lead healthier and happier lifestyles. From our humble beginnings in 2014, the Company was incorporated in Malaysia to distribute CUCKOO-branded products, starting with rice cookers. At the same time, we also introduced our mild alkaline water purifier, which produces filtered water that meets the drinking water standards set by the World Health Organization. Over time, our offerings under the CUCKOO-branded segment have expanded to include a variety of home appliances and household goods, and beyond that, the Company has also diversified its business, introducing new segments, including the CUCKOO Co-Created business segment which offers home appliances and household goods co-created with our business partners, LSK, Fujiaire and Ogawa Malaysia; the WonderLab and WonderDewi business segment which offers skincare and nutritional food products; and the WonderKlean business segment which offers home care services. The expansion of our business segments and offerings is guided by a dedicated focus on fostering a healthier lifestyle for our customers and fans and delivered by an effective business model that makes our growing holistic wellness ecosystem of solutions more accessible and affordable. We believe that this has led to the Company’s rise to prominence over the years.”
He further added, “Today, CUCKOO Malaysia has grown into a trusted household name with a strong brand presence nationwide. According to Frost & Sullivan GIC Malaysia Sdn Bhd (“Frost & Sullivan”), CUCKOO Malaysia is the second largest player in the rental industry for home appliances and household goods in Malaysia, based on revenue for the financial year ended 31 December 2024 with a market share estimated at 19.6%, and based on the number of active orders as at 31 December 2024 with a market share estimated at 23.1%, and is the market leader based on the number of outlets as at 28 February 2025. With the IPO proceeds, we aim to strengthen our market position by expanding our product and service offerings. The Company intends to do this by increasing product SKUs and home care services to support growth within existing categories while reaching new customer segments. Apart from broadening addressable markets, we believe this could also increase the cross-selling opportunities of our sales and service teams. Additionally, we plan to enhance our offline and online customer touchpoints and expand our CUCKOO Sales Team, Wonder Star Team, and CUCKOO+ Service Group to better service our customers.”
CUCKOO Malaysia’s expansion plan comes against the backdrop of a conducive environment for greater growth. The growing number of households, which outpaces the increase in population, bodes well for the demand for home appliances and household goods; while a creeping household debt limiting the financial ability of consumers to purchase big-ticket items will render the rental option a preferred one. Evidently, the rental industry of home appliances and household goods, which grew with a CAGR of 14.4%, has outpaced that of outright purchases, with a CAGR of less than 10%, between 2019 and 2024, indicating a growing industry. Additionally, Frost & Sullivan also forecasts the industry to expand at a 5-year CAGR of 9.9% between 2024 and 2029.
Mr. Kevin Davies, Chief Executive Officer/Managing Director of RHB Investment Bank Berhad said, “At RHB, we believe in supporting companies that have the courage to push boundaries. We strive to work closely with our clients to help them achieve their long-term strategic vision through our bespoke investment banking solutions. Our involvement in CUCKOO Malaysia’s IPO reaffirms our commitment to supporting the company’s transformative growth and its continued success.”
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. CUCKOO Malaysia is the sole and exclusive distributor of CUCKOO-branded products in Malaysia, Singapore, and Brunei.
CUCKOO Malaysia maintained steady revenue performance throughout the financial years 2021 to 2023, despite navigating a shortened repayment period to CUCKOO Holdings Co., Ltd. and its group of Companies (“CUCKOO Holdings Group”), which has moderated its growth. Notably, CUCKOO Malaysia has fully settled all outstanding trade payables owing to CUCKOO Holdings Group that exceeded a 90-day repayment term as at 31 July 2024. Together with the additional capital from its IPO proceeds, CUCKOO Malaysia is now well-poised to reignite its growth engine.
In conjunction with the launch of the Company’s prospectus, the application period for the Retail Offering will commence today and closes on 10 April 2025 at 5.00 p.m.
RHB Investment Bank Berhad is the sole principal adviser, a joint global coordinator, a joint bookrunner, the managing underwriter and a joint underwriter for the IPO; whilst AmInvestment Bank Berhad is a joint global coordinator, joint bookrunner and joint underwriter for the IPO.
