Cloudpoint's share price nearly doubles on ACE Market debut

Executive director and CEO Choong Wai Hoong (sixth from left) with members of the board and representatives from M&A Securities at Cloudpoint's listing ceremony

KUALA LUMPUR: Cloudpoint Technology Bhd opened at 75 sen a share on its trading debut on the ACE Market of Bursa Malaysia, representing a 97.37% premium to its initial public offering (IPO) price of 38 sen a share.

As at 10am, the trading stock of the IT solutions provider had retraced to 53 sen a share, which was 15 sen or 39.47% higher than the IPO price.

A total of 213 million shares had exchanged hands, making the counter the most actively traded in the first hour of trading.

Cloudpoint, which raised RM40.4mil from its IPO, is looking to utilise its proceeds to scale and accelerate its business in the high-growth areas of cloud and cybersecurity.

Of the amount raised, RM13.3mil will go towards business expansion, including building a new security operations centre, enhancing the existing network operations centre and establishing a new public cloud infrastructure.

From the remaining amount, RM15.8mil will be used for working capital, RM7.8mil for office relocation and RM3.5mil for listing expenses.

"Enterprises are increasingly investing in new technologies to enhance business agility and competitiveness. This is driven by various factors, including the growing emphasis on security and cyber defences, surge in cloud computing and software modernisation.

"Our IPO is perfectly timed to capitalise on these evolving trends, aligning us with tremendous market opportunities," said executive director and CEO Choong Wai Hoong in a statement.

Cloudpoint previously revealed that its clients are mostly large enterprises, comprising financial institutions , technology service providers and telecommunications companies in Malaysia.

The group recently announced its financial results for the first quarter ended March 31, 2023, where net profit tripled to RM3mil compared to RM900,000 in the corresponding quarter of the preceding year.

In the financial year ended Dec 31, 2022, the group achieved revenue of RM90.6mil and profit after tax of RM13.15mmil.

It said about 89% of its revenue was derived from customers in the financial services sector, primarily major banks in Malaysia.

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