KUALA LUMPUR: Bathroom and kitchen ware provider Sorento Capital Bhd has set the price of its initial public offering (IPO) at 37 sen per share to raise RM57.4 million from public issue of 155 million new shares on the ACE Market.
The proposed IPO also comprised an offer for sale of up to 74 million existing shares.
The listing offers investors up to 26.62 per cent stake in the company.
The offering will close on Oct 15, and listing has been scheduled for Oct 28.
Sorento Capital managing director of Loo Chai Lai in a statement said the company aims to recruit around 200 new dealers across Malaysia over the next three years to enhance the visibility of brands and products, and drive market share growth and financial performance.
"While our project-based sales currently focus on residential developments, we plan to expand into other sectors, including affordable housing, hotels, and office buildings, targeting both new builds and renovation projects," he added.
The public issue of the IPO involves 43 million new shares to the public, 16 million shares for eligible persons and 96 million shares to selected Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI).
Out of the RM57.4 million, Sorento Capital allocated more than half of the proceeds amounted to RM31.4 million for the purchase of inventories.
Meanwhile, RM6 million will be used to support branding and promotional marketing efforts, and another RM6 million for expanding the dealer network and enhancement of distribution reach.
Some RM9 million has been earmarked for repayment of bank borrowings and the remaining RM5 million will be used to defray listing expenses.
Alliance Islamic Bank Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.