KUALA LUMPUR: Revenue Group Bhd, a cashless payment solutions provider, expects to raise RM20.61 million from its initial public offering (IPO).
Managing Director and Group Chief Executive Officer, Eddie Ng Chee Siong said RM8.1 million of the proceeds would be utilised as capital expenditure (capex), while RM4.04 million would be used to upgrade and enhance its revPAY platform and to recruit more information technology personnel.
He said the company would use RM2.5 million to repay bank borrowings, RM1.5 million for business expansions to Cambodia and Myanmar, RM1.77 million for general working capital requirements while RM2.7 million would be set aside to defray listing expenses for the IPO.
"We plan to purchase approximately 9,000 units of new digital electronic data capture terminals with the capability to accept Quick Response Payment, within 24 months," he told a press conference after launching the prospectus here today.
On expansion plans to Cambodia and Myanmar, Ng said the company was looking for a strategic partnership with local companies in the two countries.
"We believe there is potential for growth in electronic payment solutions in these countries as their electronic payments system is still in at a growing stage," he said.
Under its proposed listing on the ACE Market of Bursa Securities Bhd scheduled on July 18, 2018, Revenue Group is issuing 55.71 million new shares at 37 sen per share, of which 11.14 million new shares will be made available to Malaysians via balloting.
Meanwhile, 11.14 million new shares have been allocated for the company's eligible directors and employees and the remaining 33.43 million new shares are earmarked for private placements to selected investors.
As part of its listing exercise, the existing shareholders of the company will also be offering 16.71 million shares for sale by way of private placements to selected investors.
The IPO is open for subscription starting today until July 6. - Bernama