by ANIS HAZIM / graphic by MZUKRI MOHAMAD
NEWLY-LISTED Ramssol Group Bhd wants to tap into the Philippine market to expand its regional presence in South-East Asia after making a memorable debut on the ACE Market yesterday.
Ramssol shares debuted at a price of 70 sen or at a 55.6% premium above its issue price of 45 sen yesterday, before ending the maiden trading day at 51 sen. The stock hit a high of 73 sen and low of 50 sen in intraday trade.
Ramssol has raised RM25.1 million in its listing exercise.
The homegrown human capital management (HCM) solutions and technology provider stated the Philippine market will complete its strong foothold in the South-East Asia region.
“Ramssol has its base across Malaysia, Singapore, Thailand, Vietnam and Indonesia now and we are lacking our presence in the Philippines, which is why we decided to expand there,” Ramssol MD and CEO Cllement Tan said during the virtual press conference yesterday.
He added Ramssol aims to provide services to government-linked companies, multinational companies and conglomerates that are expanding their business in the Philippines.
He expects demand for digitalisation of human resources will grow significantly in the next couple of years.
“Keeping this in mind, we will constantly capture the growth opportunities by continuously innovating our HCM tech solutions products offering and are committed to helping organisations invest in the right tools and management strategies,” he said.
From the RM25 million raised, RM2.5 million will be allocated for business expansion into the Philippines, while RM6.3 million will be allocated for the expansion of Ramssol’s Feet’s mobile app and third-party collaboration platform, Lark, in South-East Asia Tan said.
The group will allocate RM4.1 million for research and development expenditure and RM7.6 million for working capital.
“We are pleased to achieve this significant milestone and I’m looking forward to continuing to grow our base of customers and partners regionally,” Tan added.
Rakuten Trade Research has a ‘Buy’ call on Ramssol with a target price of 81 sen, based on price-earnings ratio of 17 times in its financial year 2022 (FY22).
“Ramssol’s gearing ratio is manageable at 0.56 times and has no formal dividend policy. We forecast core earnings per share growth of 6% for FY21 and 9% for FY22,” Rakuten said.
Looking ahead, Rakuten anticipates stronger demand for HCM solutions and higher reliance on IT personnel as businesses are entering the digitalisation era, expedited by the adoption of the work-from-home trend.