KUALA LUMPUR Listing-bound Senheng New Retail Bhd aims to increase its market share in home appliances to 30 per cent by 2025 from the current 13 per cent.
Senheng expects to raise RM267.5 million from its initial public offering, executive chairman Lim Kim Heng said.
Sixty per cent or RM160.5 million of the proceeds would go towards setting up new stores as well as upgrading existing stores into bigger, enhanced concept stores, Lim added.
He said the company planned to upgrade or set up 61 new and existing stores from 2022 to 2024 to elevate the shopping experience of its customers.
"We need to move a bit aggressive and with the IPO proceeds coming in, this will boost ourselves towards achieving our dreams," he told reporters after Senheng's prospectus virtual launch today.
The company is expected to list on the Main Market of Bursa Malaysia on January 25.
Out of the rest of the proceeds, another 19.3 per cent or RM51.7 million will be used to strengthen Senheng's back-end capacities and capabilities.
The company said this included developing new brand distribution business, expanding and upgrading the warehouse and logistics network, and boosting the company's digital infrastructure.
The remaining 20.7 per cent or RM55.3 million will be utilised to repay bank borrowings and defray listing expenses.
Based on an issue price of RM1.07 per share, Senheng will have a market capitalisation of RM1.6 billion upon listing.
Meanwhile, Lim said Senheng had achieved RM1.3 billion in revenue in financial year 2020 (FY20), growing 13.1 per cent from RM1.1 billion in the previous corresponding year, despite store operation disruptions due to Covid-19-induced lockdowns.
He said the company had upgraded stores by increasing floor space and offering larger product variety, and leveraged on its PlusOne loyalty programme, digital marketing and personalised telemarketing initiatives to continue serving its customers.
"Going forward, we are targeting dividend payouts of at least 30 per cent of the net profit attributable to shareholders, to reward our shareholders for their confidence in Senheng," he added.