GLOBAL Soft (MSC) Bhd, which provides business application solutions to industries locally and abroad, will raise RM4.95mil from its flotation on the Mesdaq market, scheduled for March.
The Multimedia Super Corridorstatus company is offering for sale, at 49.5 sen, 10 million shares of 10 sen each, of which 9.5 million are for private placement. The balance 500,000 shares are for public issue.
Global Soft managing director Koh Kean Mum said the proceeds would be used to fund the company's research and development activities and for working capital.
He was speaking to reporters at the share underwriting ceremony in Kuala Lumpur yesterday. K&N Kenanga Bhd is the adviser, managing underwriter, placement agent and sponsor of Global Soft's initial public offering (IPO).
Global Soft, established in 1997, provides research and development of software; system design, integration and installation; and IT services. It has been profitable since 1999 when it recorded its maiden profit after tax of RM184,000 and the figure rose to more than RM1mil in 2001.
For the financial year ended Dec 31, 2002, it expects to record an after-tax profit of more than RM1.3mil.
The group's principal product, Global Soft ERP Solution, is mainly targeted at the manufacturing industry, and also non-manufacturing industries such as trading and distribution, construction and property.
Koh said the company had also ventured overseas to market its ERP solutions in countries such as China, Vietnam and South Korea.
Last year we managed to secure an overseas project worth RM150,000, he said.
K&N Kenanga executive director Amrat Kaur said the listing of Global Soft was timely as the exercise coincided with the buoyant sentiment on the stock market.
The high volume on the KLSE main board should spill over to the Mesdaq as well with the continuing investor confidence and expectation of good corporate results this year.
We have also seen some inflow of foreign funds since last week, she said, adding that K&N Kenanga conducted inter-broker trades with foreign parties.