KUALA LUMPUR (Jan 25): Consumer electrical and electronics retailer Senheng New Retail Bhd faltered on its maiden trading day on Bursa Malaysia’s Main Market on Tuesday (Jan 25). It opened at 90 sen and rose to as high as RM1.01 before closing at 85.5 sen, representing a 21.5 sen or 20.09% discount from its initial public offering (IPO) price of RM1.07. Senheng is the largest consumer electrical and electronics chain retailer in Malaysia with a chain of 105 physical stores — operating under four different store concepts, namely Grand Senheng Elite, Grand Senheng, Senheng and senQ — which are located throughout Malaysia and online platforms, while carrying around 10,000 stock-keeping units from over 280 different brands, according to its prospectus. Meanwhile, TA Securities initiated coverage of Senheng in a research note on Jan 6, with a target price of RM1.21, representing a 13.08% or 14 sen premium to its IPO price of RM1.07. The research house added that the IPO price of RM1.07 would value the consumer electrical and electronics retailer based on a trailing price-earnings ratio of 28.8 times based on its calendar year 2020 earnings.

Source: The Edge Markets January 26, 2022 03:48 UTC