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Business Times
19-06-2025
- Business
- Business Times
South Korea's Cuckoo set for Malaysia debut after scaling down IPO
[SEOUL] A subsidiary of South Korean home-appliance maker Cuckoo Holdings is set to go public in Malaysia after a scaled-down offering that is expected to raise RM395 million (S$119.4 million). Cuckoo International (Mal) will begin trading on June 24, two months after postponing its initial public offering (IPO) due to market volatility. The final amount raised may vary as the company is waiting for approval from the bourse to reduce its public shareholding spread to 20 per cent from the current 25 per cent. Its revised offer price of RM1.08 per share, from RM1.29 previously, will value the company at RM1.55 billion. The company's debut will be closely watched for clues on demand for consumption stocks given the tepid retail subscription rate for Cuckoo. Chief executive officer Hoe Kian Choon is confident that its prospects and sizeable market share in the local home-appliance rental segment will draw investors. 'A lot of our investors were happy' that the offering was put off to ride out the volatility sparked by the US tariff announcement in April, Hoe said. 'None of our cornerstone investors left.' While market uncertainty remains high, the situation is 'more stable now,' allowing the company to revive its listing plans, he added. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Hoe, who founded the local company in 2014 as a distributor of Cuckoo products, has grown the business on the strength of its water purifier rental segment. Cuckoo Malaysia also co-creates some new products with other brands for the domestic market. The company's promising outlook prompted its Korean supplier to take up a majority stake in the Malaysian firm. Hoe said that Cuckoo Malaysia has secured nearly a fifth of the local appliance rental market and opportunities to cross-sell products among its one million active-subscriber base would help the company achieve double-digit revenue growth over the next few years. Cuckoo Malaysia's profit after tax for the first nine months of 2024 jumped 75 per cent from the previous corresponding period to RM104 million. Revenue rose 13 per cent. 'Malaysia's market is growing not only in number of households but also in household debt,' Hoe noted. 'Malaysians are looking for the best way to actually maximise their value for money. Rental will be one of the ways for them to enjoy a standard of living.' Korean rival Coway's wholly-owned local unit currently has market leadership in the rental space. Hoe, a former Coway executive, aims to catch up with other Cuckoo offerings including mattresses, massage chairs and air purifiers. Consumer brands that are centred on mass-market affordability have done well in Malaysia. Two of the country's biggest IPOs in the past year were retail chains that catered to customers looking to stretch the dollar – mini-mart operator 99 Speed Mart Retail Holdings and dollar-store chain Eco-Shop Marketing. Hoe said that Cuckoo's business fundamentals remain sound given little exposure to external shocks. While it is vulnerable to a stronger US currency – the company buys stock from its Korean parent in dollars – strong recurring income from its rental segment helps ease the pressure. Cuckoo will use proceeds from the IPO to open new concept stores that will allow cash-and-carry purchases and expand its business in Singapore. BLOOMBERG
Business Times
19-06-2025
- Business
- Business Times
Korea's Cuckoo set for Malaysia debut after scaling down IPO
(Bloomberg) – A subsidiary of South Korean home-appliance maker Cuckoo Holdings is set to go public in Malaysia after a scaled-down offering that's expected to raise RM395 million (S$119.4 million). Cuckoo International (Mal) will begin trading on June 24, two months after postponing its initial public offering due to market volatility. The final amount raised may vary as the company is waiting for approval from the bourse to reduce its public shareholding spread to 20 per cent from the current 25 per cent. Its revised offer price of RM1.08 per share, from RM1.29 previously, will value the company at RM1.55 billion. The company's debut will be closely watched for clues on demand for consumption stocks given the tepid retail subscription rate for Cuckoo. Chief executive officer Hoe Kian Choon is confident that its prospects and sizeable market share in the local home-appliance rental segment will draw investors. 'A lot of our investors were happy' that the offering was put off to ride out the volatility sparked by the US tariff announcement in April, Hoe said in an interview. 'None of our cornerstone investors left.' While market uncertainty remains high, the situation is 'more stable now,' allowing the company to revive its listing plans, he said. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Hoe, who founded the local company in 2014 as a distributor of Cuckoo products, has grown the business on the strength of its water purifier rental segment. Cuckoo Malaysia also co-creates some new products with other brands for the domestic market. The company's promising outlook prompted its Korean supplier to take up a majority stake in the Malaysian firm. Hoe said Cuckoo Malaysia has secured nearly a fifth of the local appliance rental market and opportunities to cross-sell products among its one million active-subscriber base would help the company achieve double-digit revenue growth over the next few years. Cuckoo Malaysia's profit after tax for the first nine months of 2024 jumped 75 per cent from the previous corresponding period to RM104 million. Revenue rose 13 per cent. 'Malaysia's market is growing not only in number of households but also in household debt,' Hoe said. 'Malaysians are looking for the best way to actually maximize their value for money. Rental will be one of the ways for them to enjoy a standard of living.' Korean rival Coway's wholly-owned local unit currently has market leadership in the rental space. Hoe, a former Coway executive, aims to catch up with other Cuckoo offerings including mattresses, massage chairs and air purifiers. Consumer brands that are centred on mass-market affordability have done well in Malaysia. Two of the country's biggest IPOs in the past year were retail chains that catered to customers looking to stretch the dollar – mini-mart operator 99 Speed Mart Retail Holdings and dollar-store chain Eco-Shop Marketing. Hoe said Cuckoo's business fundamentals remain sound given little exposure to external shocks. While it is vulnerable to a stronger US currency – the company buys stock from its Korean parent in dollars – strong recurring income from its rental segment helps ease the pressure. Cuckoo will use proceeds from the IPO to open new concept stores that will allow cash-and-carry purchases and expand its business in Singapore. BLOOMBERG
Malaysian Reserve
13-06-2025
- Business
- Malaysian Reserve
Cuckoo Malaysia's IPO sees modest retail demand, oversubscribed by 1.42 times
CUCKOO International Bhd, the Malaysian arm of South Korea's Cuckoo Homesys Co Ltd, has recorded modest public interest in its initial public offering (IPO), with an overall oversubscription rate of 1.42 times ahead of its Main Market debut on Bursa Malaysia scheduled for June 24. The company received 7,908 applications for 69.33 million shares, against the 28.66 million shares offered to the Malaysian public. 'The positive response for our IPO is both humbling and encouraging despite the market volatility and the rescheduling of our IPO to June 24, 2025,' said CEO Hoe Kian Choon in a statement today. 'It reflects the confidence investors have in Cuckoo Malaysia's vision, business model, and long-term growth potential.' Cuckoo had earlier revised its IPO issue price down from RM1.29 to RM1.08 per share, following the bookbuilding process and in light of a two-month deferment of its listing date due to market conditions. The Bumiputera public portion of the IPO saw an undersubscription of 0.35 times with 2,646 applications, while the remaining public portion drew a healthier response at 2.49 times oversubscription with 5,262 applications. Meanwhile, the institutional offering of 143.28 million shares was fully placed out to Malaysian and foreign investors. The 14.33 million shares reserved for eligible persons were also fully taken up, following a reallocation from the clawback of 179.1 million offer shares originally allocated to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti). Notices of allotment will be issued on June 23, and successful retail applicants will receive a refund of 21 sen per share due to the downward price revision. The IPO is expected to raise RM154.74 million in gross proceeds, which will be channelled toward rental business expansion, loan repayments, new Brandshops, IT upgrades, and regional growth in Singapore. RHB Investment Bank is the principal adviser and sole managing underwriter, while it jointly acts as global coordinator and bookrunner alongside AmInvestment Bank. –TMR
New Straits Times
16-05-2025
- Business
- New Straits Times
CUCKOO Malaysia posts record RM1.24bil revenue, issues IPO update
KUALA LUMPUR: CUCKOO International (MAL) Bhd, a leading healthy home solutions provider, has issued a supplementary prospectus outlining amendments to its earlier principal prospectus, following the strategic rescheduling of its initial public offering (IPO). The decision to delay the IPO, according to the company, was a carefully considered move by CUCKOO Malaysia's management aimed at ensuring a successful and sustainable entry into the public market, aligned with the best interests of the company and its investors. In its supplementary prospectus, CUCKOO Malaysia reported record revenue of RM1.24 billion for the financial year ended Dec 31, 2024 (FYE2024), marking a continuation of its billion-ringgit revenue streak ahead of its scheduled listing on the Main Market of Bursa Malaysia on June 24, 2025. The company's revenue grew by 11 per cent year-on-year, driven by a 62.6 per cent surge in CUCKOO Co-created products, which reached RM250.3 million, and a 3 per cent increase in CUCKOO-branded products to RM983.2 million. Pre-tax profit (PBT) rose 23.2 per cent, supported by stronger gross profit margins and reduced finance costs, particularly from a lower net foreign exchange loss. These gains were partially offset by RM5.7 million in IPO-related expenses. CUCKOO Malaysia also delivered a significant 47.7 per cent rise in profit after tax and minority interests (PATAMI), reaching RM128.9 million in FYE2024, up from RM87.3 million the previous year. Non-independent executive director and chief executive officer of CUCKOO International Hoe Kian Choon expressed confidence in the company's future outlook, citing robust consumer demand, a resilient rental-based business model, sustained investment in technology and infrastructure, and the strength of its experienced senior leadership team. "We are pleased to deliver a strong financial performance, highlighting our ongoing commitments in expanding the company's market presence by leveraging CUCKOO Malaysia's effective business model, omni-channel distribution network and ever-expanding wellness ecosystem," he said in a statement. Hoe added that the company remains focused on scaling up its operations by broadening its product offerings, strengthening home care services, and deepening its market presence across Malaysia and Singapore. "With this, we are confident that it will support our continued growth and enable us to serve a larger customer base by building brand loyalty to retain our customers and to cross-sell more of our products or services to them," he said. The supplementary prospectus also outlines the withdrawal process for investors who submitted IPO applications prior to the rescheduling announcement but now wish to retract their applications. The closing date for withdrawal requests is 5.00 p.m. on May 22, 2025. Investors may withdraw through Malaysian Issuing House (MIH), bank branches, or online platforms where applications were made. Refunds will be processed either on the same day or within eight market days of receiving a completed and valid Withdrawal Request Form, depending on the method used. The form is available via the MIH website ( by email (BRMY-MIHIPO@ or through postal submission to Malaysian Issuing House Sdn Bhd. Investors who withdraw may still reapply for the IPO during the application period, subject to terms stated in the supplementary prospectus. The IPO application period remains open and will close on June 5, 2025, with CUCKOO Malaysia's listing on June 24, 2025, on Bursa Malaysia's Main Market.
Malaysian Reserve
14-05-2025
- Business
- Malaysian Reserve
Cuckoo sets May 22 deadline for IPO withdrawal applications after rescheduling listing
CUCKOO International (Mal) Bhd has set 5pm on May 22, 2025, as the closing date for investors to withdraw their applications for its initial public offering (IPO), following a rescheduling of its listing exercise initially announced on April 9. Investors who applied for IPO shares before the rescheduling announcement and now wish to withdraw can do so through the Malaysian Issuing House (MIH), participating bank branches, or online platforms. Refunds will be processed either on the same day or within eight market days of receipt of valid withdrawal requests. Despite the withdrawal option, the IPO application for the retail offering remains open until 5pm, on June 5, 2025. The company aims to list on the Main Market of Bursa Malaysia on June 24, 2025. This update was disclosed in a supplementary prospectus issued today, which amends the principal prospectus dated March 26, 2025. The decision to delay the listing was described as a strategic move aimed at ensuring a successful and sustainable market entry amidst ongoing market volatility. In conjunction with the new prospectus, Cuckoo Malaysia reported record financial performance for the financial year ended December 31, 2024 (FY24). The company posted revenue of RM1.24 billion, an 11.0% increase year-on-year, maintaining its track record of over RM1 billion in annual revenue. The growth was driven by a 62.6% surge in sales of Cuckoo co-created products to RM250.3 million, and a 3.0% increase in Cuckoo-branded products to RM983.2 million. The company also recorded a 23.2% rise in profit before tax (PBT) and a 47.7% increase in profit attributable to owners of the company (PATAMI), reaching RM128.9 million. 'We are pleased to deliver a strong financial performance, highlighting our ongoing commitments in expanding the Company's market presence by leveraging Cuckoo Malaysia's effective business model, omni-channel distribution network and ever-expanding wellness ecosystem,' said its CEO and non-independent ED Hoe Kian Choon. He added: 'We are confident that it will support our continued growth and enable us to serve a larger customer base by building brand loyalty to retain our customers, and to cross-sell more of our products or services to them.' — TMR
