KUALA LUMPUR: Geographic information system (GIS) solutions provider RedPlanet Bhd has received Bursa Malaysia Securities Bhd’s approval to list on the LEAP Market of Bursa Securities.
It said on Wednesday the listing was expected to be in March.
The company’s GIS solutions typically assist its customer in activities such as location search, navigation, logistics routing, customer targeting and asset management.
Its executive director Panjetty Kumaradevan Senthil Kumar said the flotation exercise involved the placement of 19.93 million shares or 12.5% of the enlarged share capital at 22 sen per share.
“We expect to raise gross proceeds of approximately RM4.39mil by placing out to selected sophisticated investors from the listing, ” he added.
RedPlanet plans to use RM630,000 (14.4%) from the proceeds to set up a research and development department to study GIS application in machine learning, artificial intelligence (AI) and internet of things (IoT), with special focus on developing software related to asset identification and management.
He said the R&D department would enhance its existing machine learning and spatial analytics toolkit through the development of solutions. These solutions can be delivered to customers through the software as a service model on a “pay per use” basis.
RedPlanet plans to use RM2.53mil (57.8%) raised from the placement as general working capital to strengthen its staff force to expand its business to both Malaysia and overseas as well as to finance the group’s.
As at Dec 6,2019, it had RM26.97mil of on-going GIS contracts.
Based on the enlarged share capital of 159.40 million shares, it is expected to have a market capitalisation of RM35.07mil.
M&A Securities Sdn Bhd is the approved adviser, continuing adviser and placement agent.
RedPlanet leverages on technology-based geographical data and it provides GIS and ICT solutions as well as maintenance and support services.
The company’s GIS solutions help clients capture, store, analyse interpret, manage and present spatial or geographic data to make better business decision making.
Did you find this article insightful?
100% readers found this article insightful