Moshi to use IPO funds to add stores
Thai retailer Moshi Moshi Plc aims to expand its 101 stores to 165 by 2025, using the proceeds from its recent debut on the Stock Exchange of Thailand to serve growing demand for lifestyle products.
On Thursday, the company raised 1.26 billion baht by offering 75 million initial public offering shares on the Thai bourse at 21 baht apiece. The retailer plans to add 20 stores each year in Bangkok and surrounding regions, growing from 101 stores operating across 41 provinces to 165 by 2025.
Chief executive Sanga Boonsongkor said Moshi will open two trial standalone branches at locations near communities in secondary provinces as part of a strategy to expand its franchised operations in 2024.
The company designs and sells products in 12 categories, ranging from home furnishings, apparel and accessories to IT gadgets, with more than 22,000 items. Moshi plans to add two more product categories next year, said Mr Sanga.
Last year the retailer posted total revenue of 1.26 billion baht with a net profit of 131 million baht. In the first nine months of 2022, income totalled 1.25 billion baht, up 59% year-on-year from 788 million baht, with profit of 135 million baht.
Same-store sales grew 50.1% in 2022, boosted by the lifting of travel restrictions and a recovery in consumption. In 2021, Moshi had a market share of 37.6% in the lifestyle retail business.
He downplayed the potential impact of recession in several economies next year, saying the retail business would continue to grow.
“I believe our business will continue to grow next year as the products that we sell are used in everyday life and marketed at affordable prices,” said Mr Sanga, adding the company opened 20 stores during the pandemic.