Sorento Shares Remain Stable on IPO Debut

Moomoo IPO Hub wrote a column · Oct 28, 2024 16:31

October 28, 2024 - $SORENTO (0326.MY)$ was flat on its first trading day on Monday, remaining unchanged from the initial issue price of RM0.37, with a turnover of over 45 million. Moreover, the public portion of its initial public offering (IPO) was oversubscribed by 39.34 times.

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Sorento Capital Berhad, incorporated on May 17, 2023, is a Malaysia-based investment holding company with a rich historical footprint in the sanitary ware industry since 2005. It operates primarily in the marketing, distribution, and sale of bathroom and kitchen sanitary wares.

Sorento Capital Berhad, as presented in the prospectus, exhibits a robust financial performance with a consistent growth trajectory. The company's revenue has shown significant growth from RM66.11 million in FYE 2021 to RM151.55 million in FYE 2024, reflecting a substantial increase in its business operations and market reach. This growth can be attributed to the company's strategic initiatives, including the expansion of its dealer network and an increase in project-based sales.

Sorento Capital Berhad anticipates utilizing the gross proceeds from its Public Issue, amounting to RM57.35 million, in the following manner: branding and promotional marketing, expansion of dealer network and enhancement of distribution reach, repayment of bank borrowings, working capital for purchase of inventories and estimated listing expenses.

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