Tentative Date(s):

• Opening of application - 07 October 2024

• Closing of application - 15 October 2024

• Balloting of applications - 18 October 2024

• Allotment of IPO shares to successful applicants - 25 October 2024

• Listing on the ACE Market - 28 October 2024

Company Background

The company was incorporated in Malaysia under the Act on 17 May 2023 as a private limited company under the name of Sorento Capital Sdn Bhd. On 19 March 2024, the company was converted into a public company and assumed the name of Sorento Capital Berhad. The company is principally an investment holding company. Through its subsidiaries, they are principally involved in the marketing, distribution and sale of bathroom and kitchen sanitary wares. The company group structure as at the LPD is as follows:

Use of proceeds

1. Branding and promotional marketing - 10.46% (within 36 months)

2. Expansion of dealer network and enhancement of distribution reach - 10.46% (within 36 months)

3. Repayment of bank borrowings - 15.69% (within 12 months)

4. Working capital for purchase of inventories - 54.67% (within 24 months)

5. Estimated listing expenses - 8.72% (within one month)

Branding and promotional marketing - 10.46% (within 36 months)

The company intend to use RM6.00 million or 10.46% of the gross proceeds from the Public Issue to fund their branding and promotional marketing initiatives. 

Expansion of dealer network and enhancement of distribution reach - 10.46% (within 36 months)

The company intend to allocated RM6.00 million or 10.46% of the gross proceeds from the Public Issue for the enhancement of its distribution network, distribution network, comprising existing and new dealers. The total estimated budget for the enhancement of the distribution network, comprising existing and new dealers, is approximately RM20.00 million, which will be funded via a combination of the proceeds raised and internally-generated funds. The company plan to utilise RM6.00 million from its IPO proceeds to partially fund this enhancement plan. 

The RM20.00 million subsidies to be provided to their existing and new dealers will be used for the following purposes:

Repayment of bank borrowings - 15.69% (within 12 months)

The company intend to use RM9.00 million or 15.69% of the gross proceeds from the Public Issue to partially repay its borrowings as follows:

Working capital for purchase of inventories - 54.67% (within 24 months)

The company anticipate the need for more inventory to support their existing and future growth. Pursuant thereto and in tandem with the anticipated growth in line with the business expansion, the company has earmarked approximately RM31.35 million or approximately 54.67% of the gross proceeds from the Public Issue to replenish the inventory of bathroom and kitchen sanitary ware products. 

Business Model

The company business model is summarised below:

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