Thursday 21 Nov 2024
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KUALA LUMPUR (Oct 18): Sorento Capital Bhd (KL:SORENTO) announced that its initial public offering (IPO) saw strong demand, with the 43 million shares available to the public being oversubscribed by 39 times at an offer price of 37 sen per share.

The ACE Market-bound bathroom and kitchenware distributor’s IPO involved a total of 229 million shares, comprising 155 million new shares and an offer for sale of 74 million shares.

A significant portion — 96 million IPO shares — was allocated to Bumiputera investors, as approved by the Ministry of Investment, Trade and Industry (Miti), according to the company’s prospectus.

Sorento received 21,292 applications for 1.73 billion shares, worth RM641.81 million from the Malaysian public, reflecting an overall oversubscription rate of 39.34 times against the 43 million shares on offer, the company said in a statement on Friday.

For the allocation of approximately 21.5 million shares reserved for Bumiputera balloting, it received 9,959 applications for 665.12 million shares, resulting in an oversubscription rate of 29.94 times. For the remaining public portion, it received 11,333 applications for 1.07 billion shares, which equates to an oversubscription rate of 48.74 times.

Additionally, the 16 million shares allocated to eligible directors, employees and individuals who have contributed to the company’s success, were also fully subscribed, the statement added.

Its placement agents confirmed that they have successfully placed out a total of 170 million shares, of which 62.5 million shares were offered to selected investors.

Based on the 155 million new shares issued, Sorento is expected to raise approximately RM57.35 million from the IPO. The proceeds will be used for inventory purchases, branding and promotions, as well as expanding its dealer network.

Sorento is scheduled to be listed on the ACE Market on Oct 28, with an estimated market capitalisation of RM318 million.

Edited ByLiew Jia Teng
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