About RM2.54mil of the proceeds will be allocated for establishing a training and development centre, Agmo Academy, while RM690,000 will be allocated for the company’s regional expansion to Singapore, and the remaining RM3.18mil will go toward listing expenses.
KUALA LUMPUR: ACE Market-bound Agmo Holdings Bhd
aims to raise RM22.1mil in proceeds from its initial public offering (IPO) to fund its business expansion plans.
At the launch of its IPO prospectus, the digital solutions and application development specialist said of the proceeds, RM9.47mil will be allocated for setting up research and development, sales, marketing and business development teams, as well as technical support and maintenance service teams.
It will also assign RM6.22mil for working capital and related capital expenditure catered for the expansion of its mobile and web application development and digital platform-based services, as well as the setting up of a new office.
About RM2.54mil of the proceeds will be allocated for establishing a training and development centre, Agmo Academy, while RM690,000 will be allocated for the company’s regional expansion to Singapore, and the remaining RM3.18mil will go toward listing expenses.
“We are ready for the next stage of growth as we continue expanding our digital solution offerings.
“We expect the demand for digitalisation will continue to rise in Malaysia due to the growing need for business digital transformation, and that includes the adoption of mobile and web applications in order to remain competitive and relevant within their respective industries,” said Agmo chief executive officer Tan Aik Keong in a statement.
He also shared that Agmo was looking at expanding into Singapore, given the strong growth opportunities in the country’s mobile and web application development industry.
In addition, he said Agmo planned to establish a training and development centre with its own training syllabus to generate additional revenue while serving as a platform to recruit new industry talent for the company.
“As a start, we intend to offer training courses on subjects comprising artificial intelligence, blockchain, chatbot, mobile programming and web programming, as these syllabuses currently have commercial and practical value in the digital solution industry.
“If an emerging technology is determined to have the potential for industry adoption, we will also include it in the training courses to better equip young talent with the necessary skills and industry expertise.
“Through the training courses, we will also be able to monitor the progress and development of the students in terms of their technical skillsets, which will help us identify suitable candidates from amongst the students to join us, further increasing our talent pool,” he added.
Agmo’s IPO involves a public issue of 85 million IPO shares at an issue price of 26 sen per share, of which 16.25 million will be available to the Malaysian public, 6.5 million to eligible directors and employees and 62.25 million to be privately placed with selected investors.
Kenanga Investment Bank Bhd is the principal adviser, sponsor, underwriter and placement agent of the IPO.
