KUALA LUMPUR (March 19): Bathroom and kitchenware distributor Sorento Capital Bhd (KL:SORENTO), which debuted on the ACE Market of Bursa Malaysia in October 2024, on Thursday proposed to transfer its listing to the Main Market.
The company said in an exchange filing that it has fulfilled requirements for the transfer, including profit track record, financial position and positive net cash from operating activities.
Sorento recorded an aggregate net profit of RM75.60 million for the financial years ended June 30, 2023 (FY2023) to FY2025. Its net profit for FY2025 was RM26.24 million.
Companies seeking to transfer their listing from the ACE Market to the Main Market are required to have an aggregate net profit of at least RM20 million for the past three financial years. They would also need to have at least RM6 million in net profit for the most recent year.
Sorento said it has also met the healthy financial position requirement, with no accumulated losses and retained earnings of RM87.29 million as at June 30, 2025.
The company said it has been recording positive net cash flow in the past three years, with sufficient working capital for at least 12 months. Sorento also maintained cash and bank balances of RM17.01 million and short-term fixed deposits with licensed banks amounting to RM26.25 million as at June 30, 2025.
“The board believes that the proposed transfer will elevate the company’s credibility, prestige and market standing. It is expected to accord the company with greater visibility and recognition among a wider pool of investors, particularly institutional investors, and better reflect the group’s current scale of operations,” Sorento said in its filling.
The proposed transfer is subject to approval from Securities Commission Malaysia, Bursa Malaysia Securities as well as Sorento shareholders, and is expected to be completed by May 2026. Alliance Islamic Bank Bhd is the principal adviser for the proposed transfer.
Sorento’s share price closed down one sen or 1.54% to 64 sen on Thursday, bringing the company a market capitalisation of RM550.4 million. The stock is up 36.17% year to date.