KUALA LUMPUR: Senheng New Retail Bhd has garnered strong interest for its initial public offering (IPO) with its 30 million shares for the public attracted a total of 16,548 applications involving  343.2 million units worth RM367.3 million.

In a statement today, the consumer electrical and electronic (E&E) retailer said this represented an oversubscription rate of 10.4 times.

Senheng is expected to list on the main market of Bursa Malaysia on January 25, 2022, the first main market listing for the year.

Executive chairman Lim Kim Heng said the oversubscription indicated the public confidence in the group's over 30-year track record of building one of Malaysia's best and most progressive retail brands.

"Our growth strategies that will transform the way consumers shop. Going forward, we are expanding our nationwide store network, enhancing in-store and online shopping experiences, as well as bringing a wider range of quality products to our customers," he said.

Senheng's IPO entailed the public issue of 250.0 million new shares and an offer-for-sale of 139.5 million existing shares at RM1.07 each.

Of the proceeds to be raised from the public issue, 60 per cent or RM160.5 million will go towards setting up new stores as well as upgrading existing stores into bigger, enhanced concept stores. 

The group also plans to upgrade or set up 61 new and existing stores from 2022 to 2024 to elevate the shopping experience of its customers.

Another 19.3 per cent or RM51.7 million will be used to strengthen the group's back-end capacities and capabilities. 

This includes developing new brand distribution business, expanding and upgrading the warehouse and logistics network, and boosting the group's digital infrastructure.

The remaining 20.7 per cent or RM55.3 million will be utilised to repay bank borrowings and defray listing expenses.

Lim said Sengheng also planned to upgrade its digital infrastructure and logistics capabilities to enhance its seamless retail experience in the digital era.

"We also target dividend payouts of at least 30 per cent of net profit to shareholders, for their commitment in joining us in our transformative journey towards shaping Malaysia's New Retail Landscape."

Senheng integrated its physical store operations and back-end functions to its online platforms in 2017 and Senheng App, as part of innovative business transformation efforts.