Consumer E&E retailer Senheng New Retail Bhd (Senheng) plans to raise RM267.5 million in net proceeds from its Initial Public Offering 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 60.0% 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% or RM51.7 million will be used to strengthen the Group’s back-end capacities and capabilities. This includes developing a new brand distribution business, expanding and upgrading the warehouse and logistics network, and boosting the Group’s digital infrastructure.
The remaining 20.7% 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 market capitalisation will be RM1.6 billion upon listing.
Executive Chairman of Senheng New Retail Bhd Lim Kim Heng says, “We are targeting dividend payouts of at least 30% of the net profit attributable to shareholders, to reward our shareholders for their confidence in Senheng.”
The Group’s commitment to continuous innovation has contributed to its success, with annual revenue consistently exceeding RM1 billion from the financial year ended 31 December 2018 (FYE 2018) to 2020 (FYE 2020).
