By NUR HAZIQAH A MALEK /Graphic By TMR
Revenue Group Bhd plans to expand to Cambodia and Myanmar to provide electronic payment processing services following its initial public offering (IPO) exercise.
The cashless payment solutions provider MD and group CEO Eddie Ng Chee Siong said approximately RM1.5 million from the proceeds will be used for the expansion to Myanmar and Cambodia.
“The allocation will be halved for the planned expansion in both countries. The utilisation will be specifically for marketing, administrative and technical personnel recruitment and office incorporations,” he said at the group’s prospectus launch in Kuala Lumpur yesterday.
Revenue’s IPO is expected to raise RM20.61 million, whereby 39.3% of it will be utilised for capital expenditure to purchase approximately 9,000 units of new digital electronic data capture (EDC) terminals with a quick response (QR) payment capability.
Ng said the acquisition will support the company’s business expansion in Malaysia, especially on its plans to increase EDC terminal deployment to physical store merchants.
“Currently, our purchases of EDC terminals are financed via internally generated funds. The proceeds allocated will provide us with readily available cash for more purchases,” he said.
From the proceeds, RM4.04 million will be channelled into upgrading and enhancing the group’s multi-channel revPAY platform, as well as recruit additional information technology personnel.
To repay bank borrowings, the group has allocated RM2.5 million from the proceeds and will be using RM1.77 million for general working capital requirements, while the remaining RM2.7 million will be used to defray listing expenses.
The company will be issuing 55.71 million new shares at 37 sen per share through its IPO exercise, which is made open for subscription starting from yesterday until July 6, 2018.
Some 11.14 million of the new shares are available to the public via balloting, 11.14 million for eligible directors and employees, while the remaining 33.43 million shares are earmarked for private placement to investors.
As part of the exercise, the existing shareholders will also offer to sell 16.71 million shares for private placement.
The group is tentatively scheduled for listing on the ACE Market of Bursa Malaysia Securities Bhd on July 18, 2018.
Based on the enlarged share capital of 222.85 million shares, Revenue is expected to have a market capitalisation of RM82.45 million.