Sorento Capital Berhad saw its IPO oversubscribed by 39.34 times ahead of its listing on the ACE Market of Bursa Malaysia Securities Berhad.
The group is principally involved in the marketing, distribution, and sale of bathroom and kitchen sanitary wares which includes house brands such as the flagship 'Sorento', along with 'Mocha', 'Cabana' and 'i-Born'.
Sorento Capital's IPO comprises a public issue of 155.0 million new ordinary shares at an issue price of RM0.37 per share. This represents 18.0% of the enlarged share capital, with RM57.4 million expected to be raised.
"The group aims to use RM31.4 million (54.7%) of the proceeds for working capital for the purchase of inventories and RM6.0 million (10.5%) will be used to support branding and promotional marketing efforts, whereas another RM6.0 million (10.5%) to be channelled towards the expansion of dealer network and enhancement of distribution reach.
Another RM9.0 million (15.6%) it said will be used for repayment of bank borrowings and the remaining RM5.0 million (8.7%) will be used to repay our listing expenses."
Sorento Capital is scheduled to be listed on the ACE Market of Bursa Securities on Monday, 28 October 2024. Upon listing, Sorento Capital will have a market capitalisation of approximately RM318.2 million based on the issue price of RM0.37 per share and the enlarged share capital of 860.0 million shares.
Alliance Islamic Bank Berhad is the Principal Adviser, Sponsor, Underwriter and Placement Agent for the IPO exercise.
