Senheng to raise RM267.5mil from IPO

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KUALA LUMPUR: Consumer electrical and electronics retailer, Senheng New Retail Bhd (Senheng) plans to raise RM267.5 million in web proceeds from its preliminary public providing (IPO) on the Main Market of Bursa Securities to fund its subsequent transformation section and form the nation’s new retail panorama.

Senheng is anticipated to listing on the native bourse on Jan 25, 2022, and its IPO train entails the general public concern of 250 million new shares and an offer-for-sale of 139.5 million current shares at a difficulty value of RM1.07 per share.

Executive chairman Lim Kim Heng stated 60 per cent or RM160.5 million of the proceeds from the general public concern would go in the direction of the establishing of recent shops, in addition to the upgrading of current shops into greater, enhanced idea shops.

“We in the end purpose to ship higher service high quality to our prospects, develop our base of loyal PlusOne prospects, and reinforce our place because the primary companion to suppliers and model house owners,” he stated in a speech on the launch of Senheng’s digital prospectus right here right this moment.

The group goals to improve or arrange 61 current and new shops between 2022 to 2024 to elevate the procuring expertise of its prospects.

On regional growth, Lim stated the group has no intention to develop regionally in the intervening time because it plans to focus its operations within the nation.

“We foresee that we nonetheless have a giant room to develop right here. In phrases of residence home equipment, we’re capturing about 30 per cent of the market share,” he added.

Meanwhile, the corporate stated 19.3 per cent or RM51.7 million from the IPO proceeds can be used to strengthen its back-end capacities and capabilities, together with growing a brand new model distribution enterprise, increasing and upgrading the warehouse and logistics community, and boosting its digital infrastructure.

The remaining 20.7 per cent or RM55.3 million can be utilised to repay financial institution borrowings and defray itemizing bills, it added.

Based on a difficulty value of RM1.07 per share, Senheng will obtain a market capitalisation of RM1.6 billion upon its itemizing.

Senheng’s annual income persistently exceeded RM1 billion from the monetary 12 months ended Dec 31 2018 (FY2018) to 2020 (FY2020).

Despite retailer operation disruptions due to COVID-19-induced lockdowns, Senheng’s income in monetary 12 months (FY) 2020 grew by 13.1 per cent to RM1.3 billion from RM1.1 billion in FY2019.

This was achieved after the group upgraded its shops by rising ground house, provided bigger product selection and leveraged its PlusOne loyalty programme, digital advertising and marketing and personalised telemarketing initiatives.

Lim famous that Senheng is focusing on dividend payouts of no less than 30 per cent of the web revenue attributable to shareholders.

Meanwhile, of the 250.0 million new shares, 149.5 million shares can be positioned out to institutional and chosen buyers, and 48.0 million shares can be positioned out to Bumiputera buyers authorized by the Ministry of International Trade and Industry (MITI).

Another 22.5 million shares can be made out there for utility by eligible administrators, staff, and individuals.

The remaining 30.0 million new shares can be made out there for utility by the Malaysian public through balloting, whereas 139.5 million offer-for-sale shares can be positioned out to Bumiputera buyers authorized by MITI.

Applications for Senheng’s IPO are open on Dec 29, 2021 and can shut on Jan 10, 2022. – Bernama



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