Daythree to focus on expanding its services

At the listing of Daythree Digital: (From left) M&A Securities managing director of corporate finance Datuk Bill Tan, Daythree Digital managing director Raymond Davadass, chairman Datuk Ting Heng Peng and M&A Securities head of corporate finance Gary Ting.

PETALING JAYA: Daythree Digital Bhd is optimistic about capturing a larger share of the global business services (GBS) sector especially now that it is a listed company.

Daythree made a strong debut at 65 sen a share or 30 sen or 116% premium above its initial public offering (IPO) price of 30 sen a share.

The ACE Market listed stock hit a high of 73 sen and low of 60 sen in intraday trade before closing it maiden trading day at 62.5sen, up 32.5 sen for the day.

The tech-driven GBS solution provider is primarily involved in customer experience and lifecycle management services.

Managing director Raymond Davadass said the current GBS market size stands at RM24.79bil and is expected to grow at a compounded rate of 6.13% per annum.

“The estimated value of the industry is to grow to RM31.74bil by 2027. That augurs well for us considering we only have such a small market share at the moment, we plan to catch up and capture more of the market share that is available,” he said after the company listing yesterday.

According to Davadass, Daythree has been growing at a compound annual growth rate (CAGR) of 20% over the last three years and hopes to maintain that upward trajectory.

He said one of the main reasons for that optimism is the growing trend of businesses looking to outsource more work.

“In the past, a lot of the outsourcing work centered around costs, but these days people are seeing more value in the new and emerging technologies,” he said, adding Daythree is able to tap into those tools.

Daythree raised RM33.1mil for its listing exercise which will be used responsibly and effectively to accelerate its expansion plans, Davadass said.

“A larger chunk of the proceeds, namely RM14.7mil will be used for hiring working capital, that is 380 new people to begin working on the newly secured projects acquired in the last 12 months,” he said.

At the moment, 95% of hires are local but Davadass said the company will continue to look at capturing businesses from regional brands, which may require different language fluencies.

“We are looking to hire more foreign knowledge workers, especially people who speak Japanese or South Korean as we look to expand,” he said.

Davadass said in the short to medium time frame, Daythree will look at expanding into the Asian markets first despite acknowledging there was a high demand from countries like the United Kingdom, Australia and North America.

“For now, it just makes more sense for us to run out of Malaysia. But we do want to capture businesses from all the mentioned countries above,” he said.

“We developed our own digital tools – Faith, Daisy and Saige. These platforms embody cutting edge technologies like generative artificial intelligence and cloud computing. We continue to enhance those tools, today we are working on more technology into them,” Davadass added.