From Roadside Stall To Billionaire: The Journey Of Founder Of 99 Speed Mart Lee Thiam Wah

In the world of business, few stories are as inspiring as that of Lee Thiam Wah, the founder of 99 Speed Mart Retail Holdings Bhd. From humble beginnings as a snack vendor at a roadside stall in Malaysia, Lee has built a retail empire that today stands as a testament to perseverance, resilience, and vision. Now aged 60, Lee is set to be minted as a billionaire, as his company makes its much-anticipated debut on the Kuala Lumpur Stock Exchange in one of the largest IPOs in Malaysia's recent history.

The $531 million initial public offering (IPO) of 99 Speed Mart is Malaysia's biggest in seven years. At an IPO price of 1.65 ringgit ($0.38) per share, Lee's fortune is expected to soar to an estimated $3.3 billion, according to the Bloomberg Billionaires Index. This listing not only cements Lee's status as one of Malaysia's richest men but also marks a significant milestone for the country's capital markets, which have recently been experiencing a revival of sorts.

99 Speed Mart's listing couldn't have come at a better time for Malaysia. As the largest IPO in the country since 2017, it serves as a vote of confidence for both the local and regional economies. The successful listing highlights Kuala Lumpur as the most active hub for IPOs in Southeast Asia this year.

"It comes at a crucial moment for both Malaysia's IPO landscape and Southeast Asia's capital markets," commented Mohit Mirpuri, a senior partner at SGMC Capital, a Singapore-based fund management firm. "This could boost market sentiment and position Malaysia as a key player in regional listings." Such optimism is bolstered by Malaysia's economic growth forecast, which is expected to reach up to 5% this year.

The IPO attracted 14 cornerstone investors, including heavyweights like Abrdn Asia Ltd. and UOB Asset Management (Malaysia). Their participation signals strong institutional support for 99 Speed Mart's long-term potential, further emphasizing the importance of this IPO for the broader Southeast Asian market.

Born in Klang, a city that lies between Kuala Lumpur and the Malacca Strait, Lee was the son of a construction worker and a hawker. His family, with 11 children, struggled to make ends meet and could only afford to send him to school for six years. As a child, Lee contracted polio, which left him paralyzed and unable to walk, adding to the difficulties he already faced.

Despite these challenges, Lee did not let his disability define him. Unable to secure employment due to his physical condition, he started selling snacks from a roadside stall, driven by necessity. "Nobody would hire me due to my physical limitation," he recalled in a 2012 interview with Forbes. "I had to help myself."

His determination soon led him to open a small grocery shop in 1987, which was the precursor to what would eventually become 99 Speed Mart. A decade later, Lee was running eight stores under the name Pasar Mini 99. His wife, Ng Lee Tieng, joined the business in 1997 as a purchasing executive, helping to grow the company into what it is today. Until the IPO, the couple were the sole owners of the business, with Lee serving as CEO-a role he will continue to hold post-listing.

Today, 99 Speed Mart is the largest mini-mart chain in Malaysia, with more than 2,600 outlets across the country. It holds a commanding 40% market share in the mini-mart segment and nearly 12% of the overall grocery retail market in Malaysia, according to the company's IPO prospectus.

The company's success can be attributed to its unique business model, which focuses on convenience and affordability. The mini-mart's tagline, "Near n' Save," emphasizes its mission to provide consumers with easy access to essential goods at reasonable prices. "The scale of the firm's operations creates a barrier to entry and expansion for other mini-market players in Malaysia, hindering their ability to compete effectively," noted Arun George, an analyst at Global Equity Research.

The proceeds from the IPO will be used to fuel 99 Speed Mart's continued growth. According to the prospectus, approximately 28% of the funds will go toward expanding the company's operations, including the setup of new outlets, and distribution centers, the purchase of delivery trucks, and debt repayment. The company is already profitable, having posted a profit after tax of 133.2 million ringgit on revenues of 2.4 billion ringgit in the first quarter of 2024.

Lee Thiam Wah's success with 99 Speed Mart is not his only business achievement. The entrepreneur has diversified his holdings over the years. He owns stakes in several closely held businesses, including the sole Malaysian franchise for Burger King restaurants. Lee briefly emerged as one of the largest individual shareholders in Alliance Bank Malaysia Bhd, holding a 5% stake at one point.

Despite his vast wealth, Lee remains humble and focused on his business. His story of overcoming adversity serves as a powerful example of what can be achieved through perseverance and hard work. As SGMC Capital's Mirpuri aptly put it, "Lee's journey is an inspiring example for small business owners, showing that with determination, perseverance, and a customer-focused approach, it's possible to scale a business, even from humble beginnings."

*Inputs from Bloomberg*