Sorento debuts on the ACE Market today opening at 0.375 which is just marginally higher of 1% from its listing price of 0.37 sen.
The company iaims to raise RM57.4 million through its listing on the ACE Market of Bursa Malaysia Securities Bhd. Sorento Capital Managing Director Loo Chai Lai said the fund raised will be expansion purposes, with RM31.4 million (54.7%) allocated for working capital to purchase inventories. RM6 million (10.5%) will support branding and promotional marketing efforts, while another RM6 million (10.5%) will go towards expanding the dealer network and enhancing distribution reach.
"Some RM9 million (15.6%) will be used for the repayment of bank borrowings while the remaining RM5 million (8.7%) will cover listing expenses," Loo said in a statement.
He added that the amount will be raised via the public issuance of 155 million new ordinary shares (Issue Shares) and an offer for sale of 74 million existing shares, representing 18% and 8.6% respectively of the company's enlarged issued share capital of 860 million ordinary shares upon its listing.
"Of the 155 million Issue Shares, 43 million will be made available to the Malaysian public via balloting, while 16 million are allocated for eligible directors, employees and persons who contributed to the success of the group (Pink Form Allocations).
"The remaining 96 million Issue Shares will be offered through private placements to selected Bumiputera investors approved by the Investment, Trade and Industry Ministry," Loo said.
