News
11 June 2018
News
ACE Market-Bound Revenue to raise RM21m

KUALA LUMPUR (June 11): Cashless payment solutions provider Revenue Group Bhd plans to raise RM20.61 million from its initial public offering (IPO) to expand its business in Malaysia and across selected Association of Southeast Asian Nations (Asean) countries like Cambodia and Myanmar.

Revenue’s IPO is in conjunction with its proposed listing on the ACE Market of Bursa Malaysia. Revenue said in its prospectus that the company has also earmarked the IPO proceeds for other plans, including the enhancement of its revPAY platform and repayment of bank borrowings.

At a press conference after Revenue’s prospectus launch here today, Revenue managing director and group chief executive officer Eddie Ng Chee Siong said the acquisition of new electronic data capture (EDC) terminals with capability to accept Quick Response (QR) Payment will support the company’s business expansion in Malaysia.

Ng said this is in line with Bank Negara Malaysia’s initiative to increase the adoption of cashless payments. He said: “We currently finance the purchases of our EDC terminals by utilising internal generated funds. The proceeds allocated will provide us with readily available cash in-hand for the purchase of EDC terminals.”

According to Revenue’s prospectus, the company’s IPO comprises a public issue 55.71 million new shares and an offer for sale of 16.71 million existing shares at 37 sen each.

Revenue said the RM20.61 million expected to be raised from the public issue will accrue entirely to the company. The group said the offer for sale proceeds will accrue entirely to Revenue shareholders, who are selling the shares.

Revenue said it is scheduled to be listed on Bursa’s ACE Market on July 18, 2018. Based on Revenue’s enlarged share capital of 222.85 million shares upon listing, the company will have a market capitalisation of RM82.45 million, according to the company.

M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for Revenue’s IPO, Revenue said.

Source: The Edge Markets