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Growth in their assets are impressive, especially with the rise in equity and a solid increase in liquidity. The positive trends in solvency and the current ratio indicate that the company is well-positioned heading into the IPO. Although the increase in trade receivables and inventory are areas to monitor, overall, BMS appears to be in a strong position for future growth, with a solid foundation to support the next phase post-IPO.
BMS Holdings: A Scalable Retail Champion Riding Johor’s Property Boom
RHB positions BMS Holdings as a structurally advantaged, asset-light consumer retail business rather than a traditional building-materials company. With its focus on design, marketing, and distribution instead of manufacturing, BMS has built a 32-year track record of loss-free operations supported by consistent retail-driven cash flows. This model delivers stable margins and shields the business from the volatility faced by tile manufacturers, especially in raw material and energy costs.
A core pillar of RHB’s thesis is BMS’ dominance in Johor. As the largest tile retailer in the state, BMS is directly exposed to the strongest construction and property cycle in Malaysia. Johor, the Klang Valley, Seremban, and Sarawak; regions where BMS already operates, collectively contributed 72% of total construction value in 1H25, giving BMS a large, ready market to scale into. RHB expects project sales to remain robust as the Johor–Singapore narrative continues to lift residential and commercial property demand.
Financially, BMS has demonstrated consistent and broad-based growth. Revenue climbed from RM207.9 million (FY22) to RM320.2 million (FY25), while improvements in product mix, particularly higher contributions from its in-house brands, expanded gross margins from 31.8% to 35.1%. Retail remains the core driver at nearly 60% of FY25 earnings, with margins exceeding 42%, reflecting both pricing power and consumer preference for BMS’ branded offerings. RHB forecasts a 3-year earnings CAGR of 19%, supported by operating leverage as showroom networks scale.
The IPO proceeds will accelerate this expansion. BMS plans to open eight new showrooms, significantly lifting retail floor space in fast-growing corridors, including Seremban and the Klang Valley. A new distribution center will strengthen logistics efficiency and allow deeper regional penetration. Upgrades to showrooms, additional processing equipment, EV forklifts, and enhanced ERP/WMS systems further reinforce the company’s scalability as volume grows.
At an IPO price of RM0.22, the stock is valued at 10.5x FY27F PE, well below the 15x ascribed fair multiple and cheaper than both small–mid cap consumer retail peers and the broader Consumer Products & Services Index. RHB’s fair value of RM0.31 implies +41% upside, justified by BMS’ clean financial track record, rising margins, strong competitive moat in Johor, and the visibility of growth from its upcoming retail rollout. Post-listing, the group is expected to turn net cash and adopt a 30% dividend payout, translating into 2.4–2.9% yields from FY26F onwards.
In summary, RHB’s view is that BMS offers an attractive, scalable consumer retail exposure backed by multi-year structural catalysts, Johor’s property upswing, retail expansion, rising brand penetration, and a proven asset-light model that consistently generates cash.
BMS Holdings Berhad Sets To Raise RM80.08 Million From Ace Market IPO Exercise
The IPO will comprise a public issue of 364.00 million new shares ("Issue Shares") and an offer for sale of 156.00 million existing shares ("Offer Shares"), collectively representing approximately 33.77% of BMS Holdings' enlarged number of issued shares of 1.54 billion upon listing.
Based on the IPO price of RM0.22 per share and its enlarged number of issued shares of 1.54 billion, BMS Holdings' market capitalisation upon listing will be approximately RM338.80 million.
Based in Johor, the company is involved in the retail, wholesale, and project sales of tiles and stone surfaces, including porcelain and ceramic tiles, natural and engineered stones, and mosaic tiles. BMS Holdings also supplies complementary bathware and kitchenware products.
BMS Holdings intends to use 42.8% or RM34.3 million of the proceeds to expand its retail and distribution network, which includes establishing new showrooms in Seremban, Selangor and Kuala Lumpur, as well as a new distribution centre in the Klang Valley.
Opening of application 13 Nov 2025
Closing of application 19 Nov 2025
Balloting of application 26 Nov 2025
Allotment of IPO shares to successful applicants 03 Dec 2025
Tentative listing date 08 Dec 2025
