ACE Market Debutant Sorento Capital To Expand Into New Construction, Renovation Projects

KUALA LUMPUR, Oct 28 (Bernama) -- Sorento Capital Bhd is set to expand into new construction and renovation markets by targeting additional building segments, including affordable housing, hotels and office buildings, following its debut on the ACE Market of Bursa Malaysia today.

Managing director Loo Chai Lai noted that Sorento Capital's project-based sales are currently concentrated in residential projects.

"To strengthen our brand positioning, we will develop videos, infographics, and an online resource library that provide comprehensive product information and training support for our dealers and project sales personnel. 

"By partnering with advertising agencies, we aim to boost customer engagement, improve customers’ overall buying experience and enhance our digital presence through search engine optimisation and marketing strategies," he said in a statement issued during the company's listing ceremony today.

The bathroom and kitchen sanitary ware solutions provider made a modest entry on Bursa Malaysia today, with shares opening at 37.5 sen, up 0.5 sen above the issue price of 37 sen with an opening trade volume of 20.77 million shares.

At 12:02 pm, Sorento Capital’s share price held steady at 37.5 sen, making it the most actively traded counter in the morning session, with 100.31 million shares changing hands.

The counter ended the day’s trading unchanged at 37.5 sen with 141.91 million shares traded.

When asked about the company's readiness for the government's proposed carbon tax on the iron, steel, and energy industries by 2026, Loo noted that the company is prepared, though it remains uncertain if its product prices will be affected.

Loo said the company is committed to producing more environmentally friendly products in the future, aligning with its environmental, social and governance (ESG) policies.

“Currently, we also provide water-saving products that comply with Sewerage Services Industry Standards as well as the Water Efficient Products Labelling Scheme (WEPLS)," he said.

Out of the RM57.4 million raised from the initial public offering (IPO), RM31.4 million (54.7 per cent) will go toward working capital for inventory purchases, RM6.0 million (10.5 per cent) for branding and promotional efforts and another RM6.0 million for dealer network expansion and distribution reach enhancement.

Additionally, RM9.0 million (15.6 per cent) will be allocated for bank loan repayment and the remaining RM5.0 million (8.7 per cent) will cover listing expenses.

The company also detailed plans to recruit about 200 new dealers across Malaysia over the next three years to boost brand visibility, expand market share and drive stronger financial performance.

-- BERNAMA