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 underwrite a total of 52.5 million shares in conjunction with the group's initial public Offering on the Main Market of Bursa Malaysia.
In a statement, it said the IPO exercise entails 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 shares will be placed out to institutional and selected investors, and 48 million shares will be placed out to Bumiputera investors approved by the Ministry of International Trade and Industry (MITI).
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 via balloting.
Meanwhile, 139.5 million offer-for-sale shares will be placed out to Bumiputera investors approved by MITI.
"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 continued to grow our sales despite the challenges posed by the COVID-19 pandemic.”
“The IPO proceeds to be raised 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,” said Senheng New retail executive chairman Lim Kim Heng.
Barring any unforeseen circumstances, Senheng will be listed on Bursa Malaysia in January 2022.
Mercury Securities is the principal adviser, managing underwriter, joint underwriter and joint bookrunner for the IPO exercise, while CIMB Investment Bank and AmInvestment Bank are the joint bookrunners and joint underwriters.