KUALA LUMPUR: Senheng New Retail Bhd has signed an underwriting agreement with Mercury Securities Sdn Bhd, CIMB Investment Bank Bhd and AmInvestment Bank Bhd to launch its plans to list on the Main Market of Bursa Malaysia.

       The group said in a statement that it intends to use a majority of its initial public offering (IPO) proceeds to fund the enhancement of its in-store shopping experiences through the opening of new stores and upgrading of existing stores.

       The enhanced stores will be able to display a wider range of products and provide a richer shopping experience to customers, it said.

       “We have undergone several transformations over the years, including our transition into the seamless new retail model, to cater to the rapid digitalisation of Malaysia’s consumer landscape.

       “This proved to be a success as we continue to grow our sales despite the challenges posed by the Covid-19 pandemic,” executive chairman Lim Kim Heng said.

       “The proceeds will fund our growth strategies to cater to future market trends – through building capacity and enhancing capabilities of our operations and improving our customers’ shopping experience,” he added.

       He said these initiatives would continue to drive its sustainable growth well into the future, as well as enabling it to continue providing the best customer experience.

       “This will also strengthen our market position in the consumer retail space,” he said.

       Senheng also said some of the proceeds raised will be used to enhance its back-end support systems by increasing the capacity and capabilities of the group’s digital infrastructure and warehouse/logistic network.

       The group aims to be listed in January 2022.

       Senheng signed an underwriting agreement with Mercury Securities Sdn Bhd, CIMB Investment Bank Bhd and AmInvestment Bank Bhd to underwrite 52.5 million shares.

       This will entail a public issue of 250 million new shares and an offer-for-sale of 139.5 million existing shares.

       Of the 250 million new shares, 149.5 million will be placed out to institutional and selected investors, and 48 million shares will be placed out to bumiputra investors approved by the International Trade and Industry Ministry.

       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 through balloting, it said.