A good start to 2022 for Senheng.
Senheng New Retail Bhd, a local electrical and electronics (EE) retailer, made its debut on the Main Market of Bursa Malaysia today (January 25, 2022) with a trading price of 90 sen, a 17 sen discount from the initial offer price (IPO) of RM1. 07.
During the morning trading session, the company’s shares were seen trading at 6.19 million shares.
Senheng was the first company to be listed on the Exchange this year.
The company's executive chairman, Lim Kim Heung, said the company aimed to raise RM267.5 million from the IPO of which RM22 million would be used to develop new brand businesses and RM106.5 million for the purpose of upgrading stores and building new stores.
He added that RM29.7 million will be used to upgrade the company's warehouse and logistics network and the remaining RM55.3 million will be used to repay bank loans and listing expenses.
Meanwhile, Rakuten Trade in a note stated Senheng will benefit from increased demand in the innovative EE consumer products segment and increased disposable revenue.
He added that the firm expects Senheng to record 3 -year revenue and a compound annual growth rate of net profit (CAGR) of 12.8% and 19.9% at RM1.86 billion and RM95.5 million for financial year 2023 (FY23).
It is common knowledge that Senheng is the largest local EE retailer with 105 physical stores and manufactures 10,000 storage units (SKUs) from over 280 domestic and overseas brands.
As of the midday session, its shares remained traded at 90 sen with 95.82 million shares traded.
