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BUSINESS • 08/10/2024 12:47 PM

Sorento Capital To Raise RM57.4 Mln, Targets 200 New Dealers

KUALA LUMPUR, Oct 7 (Bernama) -- Sorento Capital Bhd, a provider of bathroom and kitchen sanitary ware solutions, is set to raise RM57.4 million through its initial public offering (IPO) and plans to recruit 200 new dealers across Malaysia over the next three years.

The company is scheduled to be listed on Bursa Malaysia’s ACE Market on Oct 28.

Sorento Capital executive director Jayden Loo Jing Kai said the company will not be selective in expanding its dealer network across the country. 

“We want to increase our presence throughout the country. The criteria for dealer recruitment will be based on the market size of specific regions and we will customise our marketing strategies accordingly,” Loo said during a press conference held in conjunction with the company’s prospectus launch.

Sorento Capital has already established a network of over 600 dealers across Malaysia, enhancing accessibility and convenience for its customers.

Loo also highlighted the company’s plans to expand into project-based sales, targeting building segments such as affordable housing, hotels, and offices. 

This will involve both new construction and renovation projects.

According to the prospectus, the IPO is priced at 37 sen per share, comprising a public issue of 155 million new ordinary shares and an offer for sale of 74 million existing shares. 

This represents 18 per cent and 8.6 per cent, respectively, of the company’s enlarged issued share capital of 860 million shares upon listing.

Of the 155 million new shares, 43 million will be offered to the Malaysian public via balloting, 16 million are reserved for eligible directors, employees, and contributors, while 96 million will be privately placed with selected Bumiputera investors approved by the Ministry of Investment, Trade, and Industry (MITI).

The RM57.4 million raised will be allocated as follows: RM31.4 million (54.7 per cent) for working capital, primarily for inventory purchases; RM6 million (10.5 per cent) for branding and promotional activities; and RM6 million (10.5 per cent) to expand the dealer network and enhance distribution.

Additionally, RM9 million (15.6 per cent) will be used to repay bank borrowings, while RM5 million (8.7 per cent) will cover listing expenses. 

The company’s market capitalisation upon listing is expected to be RM318.2 million.

Applications for the IPO have commenced today and will close on Oct 15 Oct at 5 pm.

Alliance Islamic Bank Bhd serves as the principal adviser, sponsor, underwriter and placement agent.

-- BERNAMA

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