Senheng New Retail Bhd has garnered strong interest for its initial public offering (IPO) on the Main Market of Bursa Malaysia with its public portion being oversubscribed by 10.4 times.

It said the group has received 16,548 applications for 343.2 million shares with an aggregate value of RM367.3 million for the public portion of the group’s IPO comprising 30 million shares made available for application by the Malaysian public.

Senheng is expected to list on January 25 and is slated to be the first Main Market listing for the year.

Executive chairman Lim Kim Heng said the oversubscription of Senheng’s IPO indicates the public’s confidence in its over 30-year track record of building one of Malaysia’s best and most progressive retail brands, and the growth strategies that 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.

“We are also upgrading our digital infrastructure and logistics capabilities to enhance our seamless retail experience in the digital era,” he said in a statement today.

He said the group is targeting dividend payouts of at least 30 per cent of net profit to shareholders for their commitment in joining the transformative journey towards shaping Malaysia’s new retail landscape.

According to the group, it’s IPO exercise entails the public issue of 250 million new shares and an offer-for-sale of 139.5 million existing shares at an issue price of RM1.07 per share.

Of the proceeds to be raised from the public issue, Senheng said 60 per cent would go towards setting up new stores as well as upgrading existing stores into bigger, enhanced concept stores.

“The group aims to upgrade or set up 61 new and existing stores from 2022 to 2024 to elevate the shopping experience of its customers,” it said.

The consumer electric and electronic retailer said a further 19.3 per cent would be used to strengthen the group’s back-end capacities and capabilities, while the remaining 20.7 per cent would be utilised to repay bank borrowings and defray listing expenses.