Thursday, January 27

Senheng to raise RM267.5 million from its IPO

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Lim (top row right) alongside other directors from Senheng, Mercury Securities, CIMB Investment Bank Bhd and AmInvestment Bank Bhd are seen during Senheng’s virtual IPO prospectus launch.

KUCHING (December 29): Malaysia’s leading consumer E&E retailer Senheng New Retail Bhd (Senheng) plans to raise RM267.5 million in new proceeds from its initial public offering (IPO) on the Main Market of Bursa Securities to fund Senheng’s next transformation phase and shape the nation’s new retail landscape.

Senheng’s IPO exercise entails the public issue of 250.0 million new shares and an offer-for-sale of 139.5 million existing shares at an issue price of RM1.07 per share.

Of the proceeds to be raised from the public issue, the majority 60 per cent or RM160.5 million will go towards setting up new stores as well as upgrading existing stores into bigger, enhanced concept stores.

The group aims to upgrade or set up 61 new and existing stores from 2022 to 2024 to elevate the shopping experience of its customers.

Another 19.3 per cent or RM51.7 million will be used to strengthen the group’s back-end capacities and capabilities. This includes developing new brand distribution business, expanding and upgrading the warehouse and logistics network, and boosting the group’s digital infrastructure.

The remaining 20.7 per cent or RM55.3 million will be utilised to repay bank borrowings and defray listing expenses.

Based on an issue price of RM1.07 per Share, Senheng will achieve a market capitalisation of RM1.6 billion upon listing.

During the prospectus launch yesterday, Senheng’s executive chairman Lim Kim Heng said: “In an era of rapid digitalisation, Senheng is at the forefront of shaping the New Retail landscape to meet latest consumer trends.”

“Today, our customers are increasingly purchasing from our online platforms due to the additional convenience, while our physical retail stores serve as experiential centres for customers to get up close with the brands and products of their liking.

“We aim to be the territory champion within every 5-kilometre radius of our stores, with the largest floor space and variety of products.

“Going forward, we will enhance our in-store shopping experiences and upgrade our operational capabilities to continue providing the best of seamless retail experiences to all our customers.

“These investments will not only extend our strong growth seen over the years, but also propel us to higher ground as we head into the next phase of our transformation journey.”

Of the 250 million new shares, 149.5 million shares will be placed out to institutional and selected investors, and 48.0 million shares will be placed out to Bumiputera investors approved by the Ministry of International Trade and Industry.

Another 22.5 million shares will be made available for application by eligible directors, employees, and persons who have contributed to the group’s success.

The remaining 30 million new shares will be made available for application by the Malaysian public via balloting.

Meanwhile, 139.5 million offer-for-sale shares will be placed out to Bumiputera investors approved by MITI.

Applications for Senheng’s IPO are open on December 29, 2021 and will close on January 10, 2022. Senheng is expected to list on the Main Market of Bursa Malaysia on January 25, 2022.