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.
PETALING JAYA: The distributor of electronic reloads and provider of bill payment services RichTech Digital Bhd, which is on its way to a listing on Bursa Malaysia’s ACE Market, aims to raise RM13.67mil through its initial public offering (IPO).
The IPO scheduled for Feb 17 involves the issuance of 54.66 million shares at 25 sen per share, according to the company’s prospectus launched yesterday.
The group said RM4.5mil of the proceeds would be used for marketing, promotional and collaboration activities to expand the user base for its SRS App and SRS Portal and RM3mil for the acquisition of a new office to consolidate its headquarters and branch office under one roof.
Another RM3mil would be used for working capital to support growing volumes digital transactions and platform scaling and RM3.17mil 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% and end-users forming the rest.
The SRS platform allows electronic reloads for mobile airtime, data, prepaid digital TV subscriptions, game credits, app credits, and e-wallets.
It also supports bill payments for postpaid mobile service, 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 RM50.61mil.
Under the public issue of 54.66 million shares, 10.12 million shares will 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 were open as of yesterday and will close on Jan 31, 2025, at 5pm.
KAF Investment Bank Bhd is RichTech’s principal adviser, sponsor, underwriter and placement agent for the IPO exercise.
