From left: Sorento Capital Bhd executive director Lee Chee Keong, executive director Jayden Loo Jing Kai, managing director Loo Chai Lai, Alliance Islamic Bank Bhd chief executive officer Rizal IL-Ehzan Fadil Azim, Alliance Bank Malaysia Bhd chief corporate banking & capital markets officer Teoh Chu Lin and Alliance Islamic Bank head/senior vice president - coverage & origination – Islamic capital markets Lim Shueh Li.
KUALA LUMPUR: Sorento Capital Bhd has signed an underwriting agreement with Alliance Islamic Bank Bhd (AIS) as part of its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd.
Sorento Capital, through its subsidiaries, is principally involved in the marketing, distribution and sale of bathroom and kitchen sanitary wares.
In a statement, Sorento announced that its IPO will consist of 229.0 million ordinary shares, including a public issue of 155.0 million shares and an offer for sale of 74.0 million shares. These shares represent 18.0% and 8.6%, respectively, of the company’s expanded total share capital of 860.0 million ordinary shares upon listing.
Of the 155.0 million IPO shares offered in the public issue, 43.0 million shares will be available to the Malaysian public through balloting, while 16.0 million shares are allocated for eligible directors, employees, and individuals who have contributed to the group's success (pink form allocations).
The remaining 96.0 million shares will be offered through private placements to selected Bumiputera investors approved by the Ministry of Investment, Trade, and Industry (MITI).
Additionally, of the 74.0 million IPO shares available for private placement, 62.5 million shares will be offered to selected investors, while the remaining 11.5 million shares will be reserved for Bumiputera investors approved by MITI.
AIS will underwrite a total of 59.0 million IPO Shares made available to the Malaysian public and pink form allocations.
“We are delighted to sign this underwriting agreement with AIS. This marks a significant step towards our listing on the ACE Market of Bursa Securities which will further strengthen our reputation and open doors to new avenues for growth,” managing director Loo Chai Lai said.
He said the Malaysian bathroom and kitchen sanitary ware industry will grow with the property market, driven by economic growth, a rising population, urbanisation, and increased affluence.
“The proceeds raised through our public issue will be earmarked for the purchase of inventory, branding and promotional marketing as well as expansion of our dealer network and distribution reach.
“This strategic move is in line with our anticipated business expansion and aimed at extending our reach to a broader base of end-consumers through our dealers while strengthening our brand visibility,” Loo said.
Sorento Capital is scheduled to be listed on the ACE Market of Bursa Securities by the fourth quarter of 2024, with AIS as the principal adviser, sponsor, underwriter and placement agent for the IPO.
