ACE Market-bound RichTech aims to raise RM13.67mil from IPO


From left: RichTech Digital Bhd substantial shareholder Yau Ming Teck, RichTech executive director Agnes Wong Eei Nien, RichTech managing director Lee Teik Keong, KAF Investment Bank Bhd co-head / director, corporate finance Ahmad Fazlee Aziz, RichTech independent non-executive chairman Wong Koon Wai and KAF Investment Bank director, corporate finance Yap Chin Fatt.

KUALA LUMPUR: Electronic reloads distributor and bill payment service provider RichTech Digital Bhd, which is en route to a listing on Bursa Malaysia’s ACE Market, aims to raise RM13.67 million through its initial public offering (IPO).

The IPO involves the issuance of 54.66 million shares at 25 sen per share, and the listing is scheduled for Feb 17, 2025, according to its prospectus launched today.

Of the proceeds, the group said RM4.5 million would be utilised for marketing, promotional and collaboration activities to expand the user base of end-users for its SRS App and SRS Portal; and RM3 million would be for the acquisition of a new office, consolidating RichTech’s headquarters and branch office under one roof.

Meanwhile, RM3 million would be used for working capital to support the growing digital transaction volume and platform scaling, and RM3.17 million was allocated for estimated listing expenses, it said.

RichTech managing director Lee Teik Keong said that as of 2023, the number of users of the company’s proprietary SRS platform had reached four million, with corporate users making up 98 per cent and end-users forming the rest.

"This year, we are doing promotions and advertisements on the Google search engine and other platforms. So we think we will have more users by the end of this year,” he told a press conference after the prospectus launch here today.

However, he did not disclose the total user target or expected increase in user number for this year.

The SRS platform allows electronic reloads for mobile airtime, data, prepaid digital TV, game credits, app credits, and e-wallets.

It also supports bill payments for postpaid mobile services, utilities, sewerage maintenance, digital TV, internet, property taxes, and education loans.

Based on the enlarged share capital of 202.45 million ordinary shares, RichTech is expected to have an indicative market capitalisation of RM50.61 million.

Under the public issue of 54.66 million shares, 10.12 million shares would be available for application by the Malaysian public via balloting; 1.55 million shares for application by its eligible directors, employees as well as persons who have contributed to the success of the group; and 42.99 million shares for application by way of private placement to selected investors.

There is also an offer for sale of 25.31 million shares by way of private placement to selected investors.

Applications for the public issue are open from today and will close on Jan 31, 2025, at 5 pm.

KAF Investment Bank Bhd is RichTech's principal adviser, sponsor, underwriter and placement agent for the IPO exercise. - Bernama

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Business News

Ringgit opens higher against US$, Asean currencies ahead of GDP data release
FBM KLCI little changed ahead of GDP result
Singapore's economy expands 4.4% in 2024, up from earlier estimates
Trading ideas: MAHB, Perak, Glomac, Sunway, MN, Able Global, Tanjung Offshore, DNeX, VS, CelcomDigi, Dialog, ES Sunlogy, Luxchem, Mega Fortris
Oil ends flat, pares early losses as tariffs delayed
Wall St ends higher after Trump unveils tariff plan
Positive outlook for property sector this year
KWAP posts record net income in 2024
AirAsia X 4Q24 passenger volume increases 20%
GUH to sell China land for RM120mil

Others Also Read