KUALA LUMPUR: Revenue Group Bhd is set for a busy year ahead once it is listed on Bursa Malaysia’s ACE Market next month, which is expected to raise RM21 million.
The multi-channel payment solutions provider’s services are divided into three segments, namely deployment of Electronic Data Capture (EDC) terminals, electronic transaction processing and solutions and services related to payment infrastructure.
The company mainly works with financial institutions, physical and online store merchants, e-money payment scheme.
As of the end of 2017, Revenue Group’s five main customers are an unidentified China-based firm which contributed a total of RM6.77 million in revenue, AmBank Group Bhd (RM4.1 million), First Data Merchant Solutions (Malaysia) Sdn Bhd (RM2.6 million), OCBC Bank (Malaysia) Bhd and United Overseas Bank (Malaysia) Bhd.
Managing director and group chief executive officer Eddie Ng Chee Siong said it was in discussions with some new players to become its main customers.
He is also confident that there will be double digits growth from its China-based customer.
“Our total transactional value for this China online marketplace from financial year ended June 2015 (FY15) to June 2017 (FY17) were at some RM494 million collectively. We have also seen growth within this space, year on year and we believe that the growth contribution this year would be in the double digits range,” he said.
He disclosed that Revenue Group was targeting the Malaysia-based customers given its existing network and infrastructure.
The company plans to use 39.3 per cent (RM8.10 million) raised from the initial public offering (IPO) as capex to buy 9,000 units of new EDC terminals with the capability to accept Quick Response (QR) payment, and 7.3 per cent (RM1.5 million) for business expansion into Cambodia.
“Both these countries are attractive to us given the low penetration of mobile payment solutions providers like us. As of right now, we will enter it through partnerships with local players but we are not at a liberty to discuss in great detail yet.”
Both objectives, according Ng would be completed within 24 months from the listing.
The company is issuing 55.71 million new shares at 37 sen per share, of which 11.14 million new shares will be made available to Malaysians via balloting, during its proposed listing on July 18.
A total of 11.14 million new shares have been allocated for the company’s eligible directors and employees and the remaining 33.43 million new shares are earmarked for private placements to selected investors.
The existing shareholders will also be offering 16.71 million shares for sale by way of private placements to selected investors, as part of the listing exercise.