by SULHI KHALID/ pic by ARIF KARTONO
IDB Technologies Bhd, a property management solutions (PMS) provider, made its debut on the LEAP (Leading Entrepreneur Accelerator Platform) Market of Bursa Malaysia at a premium of 21% or 1.5 sen to 8.5 sen over its reference price of seven sen.
The company’s share price closed two sen or 28.6% higher at nine sen, valuing the company at RM45 million.
The Cyberjaya-based company raised RM3.5 million in proceeds from investors with RM1 million earmarked for expansion in Malaysia and the South-East Asia region.
Another RM1 million will be allocated for working capital and RM700,000 for technology research and development (R&D).
IDB Technologies CEO Cheah Kah Beng said the company now has a 1% market share of the PMS market among the domestic hotel industry and is pushing ahead to expand its presence in tandem with the tourism growth in the region.
The PMS offered by IDB for hotels and accommodations comprise proprietary end-to-end software modules for reservations and booking engines, front desk, housekeeping, point-of-sale software, accounting and others.
Its customer base ranges from budget to one-to-three star hotels, up to five-star hotels, attesting its robustness and scalability.
“Beyond Cambodia, we also intend to expand our reach to new markets of Singapore, Vietnam and Myanmar, in line with the anticipated boom in tourism and the corresponding demand for the hotel and accommodation sector,” he stated.
The company aims to organise and participate in local and regional exhibitions and events to enhance awareness of its encompassing solution to potential customers and grow the business, Cheah noted in a statement yesterday.
According to the independent market research, the number of hotels in Singapore have risen from 373 in 2013 to 422 in 2017, and is expected to grow further.
In Myanmar, the number of hotels jumped by 15% per annum from 923 to 1,590 in the same period.
Meanwhile in Vietnam, the arrival of foreign tourists has increased significantly by 15% annually from 7.7 million to 15.5 million people over the same period, illustrating the positive prospects for companies like IDB.
Cambodia has an annual growth of 8% in inbound arrivals with tourist numbers rising from 4.2 million to 6.2 million people in 2017.
Apart from the regional expansion, the group is also investing into technology R&D, with the aim to enhance the existing PMS, as well as create add-on modules.
“New add-on modules under development include conversational commerce, event management and maintenance management. IDB also intends to improve the prototype design of its kiosk,” IDB added.
MainStreet Advisers Sdn Bhd is the approved advisor and continuing advisor for IDB’s initial public offering.
* The article has been edited and rectified for clarity.