AppAsia to list online shopping business on ASX


New high for Dagang NeXchange Bhd

KUALA LUMPUR: AppAsia Bhd aims to consolidate and list its online shopping business on the Australian Securities Exchange (ASX) under AppAsia Ltd (AL) by the third quarter of this year.

In a filing with Bursa Malaysia on Monday, the e-commerce and IT security solutions provider said the proposed public issue would raise up to A$6mil(RM20.2mil) based on the issue price of 20 cents per AL share.

Of the proceeds, the group plans to use up to A$3.25mil (RM11mil) for expanding the range of products offered in AppAsia e-Marketplace in the existing markets (Malaysia and Australia) and venturing into Indonesia and Thailand.

AppAsia said it would sell IT systems and mobile application developer AppAsia Studio Sdn Bhd (ASSB), online apparel and automotive accessories retailer AppAsia Mall Sdn Bhd (AMSB) and AppAsia eMarketplace owner-operator AppAsia International Sdn Bhd (AISB) to AL for A$543,615 (RM1.8mil) to be satisfied via the issuance of 45.37 million ordinary AL shares to AppAsia.

AISB will dispose of the entire stake in Australia-incorporated online trading and e-commerce subsidiary AppAsia International Pty Ltd to AL for A$115,331 (RM388,843) be satisfied by issuing 9.63 million AL shares to AppAsia.

Besides the four subsidiaries, AL will also be the holding company of Admall Sdn Bhd. AL had on Monday entered into a share purchase agreement with Datuk Patrick Tan Boon Jin and Lin Wan Lin to buy 100% equity interest in Admall for A$1.19mil (RM4mil).

Admall operates an online shopping mall that offers nutrition consultancy service and health products, among others.

AL will seek an initial public offering involving the public issuance of between 20 million and 30 million new AL shares at 20 cents apiece. The compsany will have an enlarged paid-up capital of up to 110.5 million shares. 

After the proposals, the subsidiaries will become wholly-owned subsidiaries of AL while AppAsia will hold between 49.73% and 54.78% effective equity interest in AL.

AppAsia said the proposed listing would, among others, enable the AL group to gain direct access to the Australian capital market for capital raising and to accelerate its expansion and strengthen its market position in the Asean region as well as Australia.

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