KUALA LUMPUR: Sorento Capital Bhd is targeting new construction and renovation projects by tapping into building segments such as affordable housing, hotels and offices.
The bathroom and kitchen ware solutions provider aims to increase brand visibility, expand market share and drive stronger financial performance in the coming years.
Managing director Loo Chai Lai said to strengthen brand positioning, the company will develop videos, infographics, and an online resource library that will offer comprehensive product information and training support to its dealers and project sales personnel.
“Partnering with advertising agencies, we aim to boost customer engagement, enhance the customers’ overall buying experience, and optimise our presence through search engine optimisation and search engine marketing strategies,“ he said at the listing ceremony today.
Sorento Capital, through its subsidiaries, markets, distributes and sells bathroom and kitchen ware. The group’s product portfolio spans affordable to luxury, featuring house brands.
The company made its debut on the ACE Market of Bursa Malaysia today, opening at 37.5 sen, reflecting a premium of half a sen or 1.35% over the issue price of 37 sen, on volume of 20.77 million shares. The stock closed at 37.5 sen with 141,9 million shares traded.
Its market debut follows an initial public offering (IPO) oversubscription of 39.34 times.
Out of the RM57.4 million raised from the IPO, RM31.4 million (54.7%) has been allocated for purchasing inventories.
The company has aside RM6 million (10.5%) to support branding and promotional marketing efforts, whereas another RM6 million will be channelled towards the expansion of dealer network and enhancement of distribution reach. Further, RM9. million (15.6%) will be used to repay bank borrowings, and the remaining RM5 million (8.7%) will be used to defray listing expenses.
Loo said the ACE Market listing marks a significant milestone for the company as it enters a new era as a public-listed company.
“This achievement is a testament to our team’s dedication and hard work, which has successfully navigated the bathroom and kitchen sanitary ware industry for over two decades. Fuelled by the funds raised from the IPO exercise, we plan to recruit approximately 200 new dealers nationwide over the next three years,“ he said.
Sorento Capital executive director Lee Chee Keong said the market requirements for environmental, social, and governance policies were an integral part of the process and a positive step forward.
“We are operating in water and sanitation, and we are committed to water-saving initiatives, with many products already meeting National Water Services Commission’s Water Efficient Product Labelling Scheme standards.
“We remain focused on expanding eco-friendly solutions and driving sustainable, innovative development,” said Lee.
On the financial front, Sorento Capital’s revenue grew to RM151.5 million in the financial year ended June 30, 2024 from RM112.3 million in FY23, representing a compounded annual growth rate of 34.9%.
