KUALA LUMPUR: Senheng New Retail Bhd’s preliminary public providing (IPO) for the general public portion has been oversubscribed by 10.4 times.
Senheng acquired a complete of 16,548 purposes for 343.2 million shares with an combination worth of RM367.3mil, for the general public portion of the group’s IPO comprising 30.0 million shares made obtainable for utility by the Malaysian public.
Senheng is predicted to checklist on the Main Market of Bursa Malaysia on Jan 25 and is slated to be the primary Main Market itemizing for the yr.
Executive chairman Lim Kim Heng stated: “The oversubscription of Senheng’s IPO indicates the public confidence our over 30-year
track record of building one of Malaysia’s best and most progressive retail brands, and our growth strategies that will transform the way consumers shop.”
“Going forward, we are expanding our nationwide store network, enhancing in-store and online shopping experiences, as well as bringing a wider range of quality products to our customers. We are also upgrading our digital infrastructure and logistics capabilities to enhance our seamless retail experience in the digital era.
“Furthermore, we are targeting dividend payouts of at least 30% of net profit to shareholders, for their commitment in joining us in our transformative journey towards shaping Malaysia’s new retail landscape.”
Senheng’s IPO train entails the general public subject of 250.0 million new shares and an offer-for-sale of 139.5 million present shares at a problem value of RM1.07 per share.
Of the proceeds to be raised from the general public subject, 60.0% or RM160.5mil will go in the direction of organising new shops in addition to upgrading present shops into larger, enhanced idea shops.
The group goals to improve or arrange 61 new and present shops from 2022 to 2024 to raise the buying expertise of its clients.
Another 19.3% or RM51.7mil will probably be used to strengthen the group’s back-end capacities and capabilities.
The remaining 20.7% or RM55.3mil will probably be utilised to repay financial institution borrowings and defray itemizing bills.
Mercury Securities Sdn Bhd is the principal adviser, managing underwriter, joint underwriter and joint bookrunner for the IPO train, whereas CIMB Investment Bank Bhd and AmInvestment Bank Bhd are the joint bookrunners and joint underwriters.
