PETALING JAYA: Senheng New Retail Bhd (Senheng) made its debut on the Main Market of Bursa Malaysia today, opening at 90 sen a share, a discount of 17 sen, or 15.9%, from its offer price of RM1.07.

The counter saw 6.19 million of its shares traded at the opening bell. It closed at 85.5 sen, 21.5 sen, or 20%, below the offer price with 163,548,600 shares traded.

Senheng, which is the first company to be listed on the Main Market this year, raised RM267.5 million from its initial public offering (IPO), of which RM22 million will be used for developing new brands distribution business within three years.

The consumer E&E products retailer has allocated RM160.5 million from the IPO proceeds to set up new stores as well as upgrade existing stores into larger and enhanced concept stores. The group aims to upgrade or set up 61 new and existing stores from 2022 to 2024.

A sum of RM29.7 million will be used to expand and upgrade the warehouse and logistics network and boost the group’s digital infrastructure. The remaining RM55.3 million will be used to repay bank borrowings and defray listing expenses.

Senheng executive chairman Lim Kim Heng said the group will expand its variety of products, especially in home and personal care.

“We have sold RM2 million worth of ‘Delighto’ products within five months since it was launched, which is a testament of a strong market acceptance. It gives us the confidence to expand our brand distribution business.

“We continue to identify suitable brands of kitchen appliances, personal and beauty care products, home electricals, and IoT products, to broaden the choices to consumers.

“Besides, we will complement the larger product portfolio with the all-new Senheng App, where we aim to bring a whole new lifestyle ecosystem to our loyal PlusOne members.”

Senheng aims to distribute a dividend of at least 30% of net profit to shareholders.

Senheng started its brand distribution business in 2020, where it was awarded the exclusive distributorship of international brands ‘Robam’ kitchen appliances and ‘Jimmy’ vacuum cleaners and hair dryers. Senheng launched itsin-house cookware brand ‘Delighto’ in August 2021.