MALAYSIA’S leading consumer electrical & electronic (E&E) retailer Senheng New Retail Bhd made a sombre debut on the Main Market of Bursa Malaysia this morning amid bearish sentiment which saw the FBM KLCI plummeted 17 points at the close of today’s mid-day trading.
The closest the counter came close to its initial public offering (IPO) price of RM1.07 was RM1.04 before it started cascading to a low of 87 sen. At the mid-day trading close, Senheng was down 17.5 sen or 16.36% to 89.6 sen with 134.89 million shares traded (the day’s most active stock), thus valuing the company at RM1.12 bil.
This paled in comparison with Coraza Integrated Technology Bhd which debuted on the ACE Market with a bang on Jan 20 as its share price more than doubled over its IPO price of 28 sen.
The integrated engineering solution provider ended its maiden trading day at 64.5 sen for a premium of 36.5 sen or 130.36%. It is currently trading at 80.5 sen, down 1 sen or 1.23% with 66.36 million shares traded, thus valuing the company at RM250 mil.
Senheng has raised a total of RM267.5 mil in IPO proceeds, of which RM22 mil would be used for developing new brand distribution business, and RM160.5 mil will go towards setting up new stores as well as upgrading existing stores into bigger, enhanced concept stores.
The group has an ambitious plan to upgrade or set up 61 new and existing stores from 2022 to 2024 to elevate the shopping experience of its customers.
A further RM29.7 mil will be used to expand and upgrade the warehouse and logistics network and boost the Group’s digital infrastructure. The remaining RM55.3 mil will be utilised to repay bank borrowings and defray listing expenses.
Senheng targets to distribute dividends of at least 30% of net profit to shareholders.
“With our seamless New Retail platform, Senheng has a resilient business model that has proven able to withstand and even outperform the competition,” contended the company’s executive chairman Lim Kim Heng.
“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 (MCO 3.0), 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.” – Jan 25, 2022
