KUALA LUMPUR (Dec 13): Consumer electrical and electronics retailer Senheng New Retail Bhd has inked an 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 its initial public offering (IPO) on the Main Market of Bursa Malaysia Securities Bhd.

In a statement Monday (Dec 13), the firm said the IPO exercise entails a public issue of 250 million new shares and an offer-for-sale of 139.5 million existing shares.

It said 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.

It said 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.

Senheng executive chairman Lim Kim Heng said the retailer has undergone several transformations over the years, including 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 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,” he said.

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.

Senheng is expected to list in January 2022.