SENHENG (5305) SENHENG NEW RETAIL BERHAD opens 15.89% lower at 90 sen on Bursa debut
KUALA LUMPUR: Senheng New Retail Bhd opened at 90 sen a share on its debut on the Main Market of Bursa Malaysia, which was 17 sen or 15.89% below its its initial public offering price of RM1.07.
At 11.25am, the stock was trading 16.36% or 17.5 sen lower at 89.5 sen apiece on the back of 124.73 million shares traded.
In a statement issued in conjunction with the listing ceremony, Senheng executive chairman Lim Kim Heng said the electronics retailer was confident over its plan to expand its brand distribution business.
"We continue to identify suitable brands of kitchen appliance, personal and beauty care products, home electricals and IoT products to give wider choices to Malaysian consumers and further elevate the standard of living of the rakyat," he said.
He added that the larger product portfolio will be complemented with the new Senheng app and increase customer traffic.
According to Lim, Senheng targets to distribute dividends of at least 30% of net profit to its shareholders.
"With our seamless New Retail platform, Senheng has a resilient business model that has proven to withstand and even outperform the competition.
"Our financial performance for the nine months ended Sept 30, 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," he said.
Senheng said it had raised a total of RM267.5mil in IPO proceeds, of which RM22mil will go towards its new brand distribution business and RM160.5mil towards setting up new stores as well as upgrading stores into bigger, enhanced concept stores.
The group targets to set up or upgrade 61 new and existing stores from 2022 to 2024.
Meanwhile, a further RM29.7mil will be used to expand and upgrade the warehouse and logistics network and boosting the group's digital infrastructure.
https://www.thestar.com.my/business/business-news/2022/01/25/senheng-opens-1589-lower-at-90-sen-on-bursa-debut
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