From left: RichTech Digital senior independent non-executive director Koon Wan Kan, independent non-exucutive director Yeoh Jie Hu, independent non-executive director Tan Yeon Kieng, executive director Agnes Wong Eei Nien, managing director Lee Teik Keong, substantial shareholder Yau Ming Teck, independent non-executive chairman Wong Koon Wai, KAF Investment Bank Bhd co-head and corporate finance director Ahmad Fazlee Aziz and corporate finance director Yap Chin Fatt
PETALING JAYA: RichTech Digital Bhd’s shares soared by a premium of 200% up to 75 sen as it commenced trading on the ACE Market of Bursa Malaysia.
This was an increase from its initial public offering (IPO) price of 25 sen apiece.
RichTech managing director Lee Teik Keong attributed the strong market response to investor confidence in the company’s business model, track record and growth potential of the company’s electronic reload and digital bill payment services.
Moving forward, he outlined the group’s three-pronged strategy to drive growth, which includes expanding its software requirements specification (SRS) end-users and driving sales growth through partnerships, as well as broadening its service offering and drive app usage.
Lee said end-users constituted 1.2% of RichTech’s total gross sales for the group’s financial year ended Dec 31, 2024 (FY24).
“We will intensively market our efforts with the RM4.5mil from the IPO proceeds to allocate for this,” he told the media during a virtual press conference after the listing ceremony yesterday.
For its partnership-driven sales growth strategy, RichTech has earmarked RM3mil from the IPO proceeds to support increased working capital needs, with plans to hire additional customer service workforce as well as business development personnel.
As for the third area of focus, the company is developing an online marketplace within its SRS app, in collaboration with apparel retailer Pusat Pakaian Hari-Hari Sdn Bhd.
The marketplace, slated for launch in the second quarter of 2025, is expected to enhance service offerings and drive app usage.
“This will broaden our service offerings and drive app usage, with development costs being funded internally,” he added.
Prior to its market debut, RichTech’s IPO saw an overwhelming oversubscription of 245.42 times, with 54.66 million new ordinary shares issued, successfully raising RM13.67mil in proceeds.
Of this, RM7.5mil has been allocated for promotional and marketing activities, as well as for working capital support.
The remainder of the proceeds has been set aside for the acquisition of a new office as well as estimated listing expenses at RM3mil and RM3.17mil, respectively.
RichTech had posted a net profit of RM939,000 and a revenue of RM1.77mil in the fourth quarter ended Dec 31, 2024. This brings the cumulative net profit to RM5.97mil as the group closed FY24. Its revenue for the year was RM9.19mil.
The counter closed seven sen up to 32 sen.
