Senheng, Malaysia’s leading consumer E&E retailer targets to capture 30% of the market share by 2025 with their expansion and capacity planning and in line with store brandings such as Senheng Elite.
Speaking to the media after the debut of Senheng IPO (initial public offering) today, the Executive Chairman of Senheng, Lim Kim Heng told the media the Group’s expansion and organic growth plan.
Senheng New Retail Berhad made its debut on the Main Market of Bursa Malaysia today, and is the first Main Market listing of 2022.
Senheng raised a total of RM267.5 million in IPO proceeds. Of the proceeds raised from the public issue, RM22 million would be used for developing new brand distribution business, and RM160 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.
A further RM29.7 million will be used to strengthen the group’s back-end capacities and capabilities i.e. to expand and upgrade the warehouse and logistics network and boosting the Group’s digital infrastructure. While the remaining RM55.3 million will be utilised to repay bank borrowings and defray listing expenses.
On the dividend policy, Senheng targets to distribute dividends of at least 30% of net profit to shareholders.
“Our financial performance for the nine months ended 30 September 2021 shows this clearly; despite two months of closures due to the Movement Control Order, our revenue still increased by 12.3% year-on-year, which is faster than the industry’s 6.8% growth in total E&E retail monthly average sales. With our growth strategies in place, we are confident of our future prospects.” said Mr Lim.
“We will stay focused on Malaysian market and be a territory champion,” Mr. Lim commented on the regional expansion plan.
