On 28 June 2023, MST Golf Group Bhd (MST Golf) launched its IPO [check out the IPO Prospectus (Part 1, Part 2 and Part 3)] at RM 0.81 per share.

Upon listing, MST Golf’s market capitalisation would be lifted to RM 664.90 million.

Source: Page 19 of MST Golf’s IPO Prospectus

MST Golf IPO application would be closed on 7 July 2023 and its shares would be listed on Bursa Malaysia on 20 July 2023. 

Here, I’ll summarise 7 things to know about MST Golf IPO… 

1. Corporate Profile

MST Golf sells golf clubs, golf balls, golf apparels, and golf related accessories in 44 outlets located in Malaysia and Singapore.

In addition, MST Golf offers many related services such as golf coaching, rental of golf equipment, and planning of golf tournament events.

Here’s an example of its online store too:

mst golf online

Presently, MST Golf sells 12,000 store keeping units (SKUs) under 97 key brands namely:

  • Calvin Klein,
  • PGA Tour,
  • Under Armour,
  • Cleveland GOLF,
  • Yamaha,
  • Wilson,
  • Nike Golf and so on and so forth. 

Source: Page 10 of MST Golf’s IPO Prospectus

2. Profitability 

Source: Page 281-282 of MST Golf’s IPO Prospectus

In 2019-2022, MST Golf had attained growth in sales and profits with EPS almost tripling in the period.

Its growth was attributed to increasing sales for golf merchandise in tandem with the rise in its network of retail stores from 35 outlets in 2019 to 44 outlets in 2022.

Despite the dip in revenue in year 2020 during Covid, the higher profit margins resulted in higher earnings.

In addition, MST Golf has improved as its sales growth has surpassed the growth of its administration, selling, and distribution expenses during the period. 

3. Balance Sheet 

Source: Page 345-346 of MST Golf’s IPO Prospectus

MST Golf had improved its current ratio from 1.07x in 2019 to 1.54x in 2022. On top of that, its gearing ratio has dropped from 149% in 2019 to 64% in 2022.

This improvement is due to faster growth in MST Golf’s total equity over its total borrowings in the 3 years. 

4. Utilisation of IPO Proceeds

MST Golf intends to raise RM 129.6 million in IPO Proceeds. Of which, the growth plans are as per shown below: 

Source: Page 17 of MST Golf’s IPO Prospectus

1. Expansion in Malaysia and Singapore (RM 62.76 million)

It mainly refers to MST Golf’s intention to grow its retail network by 15 stores in the next 3 years. By 2025, it would have 59 stores in Malaysia and Singapore. 

Source: Page 31 of MST Golf’s IPO Prospectus

2. Expansion into New Geographical Markets (RM 53.55 million)

In addition, MST Golf intends to expand into three nations in ASEAN: Indonesia, Vietnam, and Thailand.

By 2026, it would set up 16 outlets, where the locations of these outlets are as follows: 

Source: Page 34-35 of MST Golf’s IPO Prospectus

3. Upgrade of Digital Technology Facilities (RM 3.00 million)

They include the upgrading of mobile and web applications and ERP systems: 

Source: Page 36 of MST Golf’s IPO Prospectus

5. Major Shareholders

Source: Page 210 of MST Golf’s IPO Prospectus

Ng Yap Sio and Low Kok Poh shall remain as major shareholders of MST Golf via their direct shareholdings and indirect shareholdings held with All Sportz with a total 52% stake post-IPO.

Ng Yap Sio is appointed as the Group CEO of MST Golf whereas, Low Kok Poh is appointed as the Executive Chairman of MST Golf.

Thus, they remain influential in the board and management affairs of the company upon listing. 

6. Dividend Policy 

MST Golf targets a payout ratio of 30% of annual profit after tax (PAT).

So based on its 2022 EPS of 3.25 sen, its minimum dividends per share (DPS) would be around 0.975 sens.

This works out to be a dividend yield of 1.20% per annum as shown below.

Dividend Yield = EPS x 30% / IPO Offer x 100%
= 3.25 sen x 30% / 81 sen x 100%
= 1.20%

7. Valuation

Based on its 2022 EPS of 3.25 sens, the IPO offer is valued at 24.92x P/E.

P/E Ratio = IPO Offer / EPS
= 81 sen / 3.25 sen
= 24.92


MST Golf is an experienced golf retailer with wide market coverages in Malaysia and Singapore. It had expanded its store outlets and thus, has reported a rise in revenues and earnings in 2019-2022.

Looking ahead, MST Golf has committed the company’s overseas expansion plans to Indonesia, Vietnam, and Thailand as well.

So, as an investor, the key is to assess the attractiveness of its IPO offer before deciding on it. 

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