Agmo launches 85m IPO shares at 26 sen each

by AZALEA AZUAR / pic credit:

AGMO Holdings Bhd today launched 85 million IPO shares at an issue price of 26 sen per share.

Of the total, 16.25 million shares are available for the Malaysian public; 6.5 million for eligible directors, key senior management, employees, and business associates of Agmo and its subsidiaries; while 62.25 million shares are for private placement to selected investors.

Agmo aims to raise RM22.1 million from its IPO proceeds to invest in the research and development team, sales, marketing and business development team as well as a dedicated technical support and maintenance services division (RM9.47 million).

The other RM6.22 million will be used for its working capital and expansion plans; RM2.54 million for building a training and development centre; RM0.69 million will be used on its Singapore expansions while the remaining RM3.18 million is for listing expenses.

Agmo CEO Tan Aik Keong said the company is ready for the next stage of growth as it continues expanding its digital solution offerings. 

“We expect the demand for digitalisation to continue to rise in Malaysia due to the growing need for business digital transformation, and that includes the adoption of mobile and web applications to remain competitive and relevant within their respective industries,” he said in a press conference after the launch of its prospectus which is in conjunction with its listing on Bursa Malaysia Securities Bhd ACE Market today.

Tan believed that Agmo’s expansion to Singapore will increase its business profile in the South-East Asian region since the country’s mobile and web application industry is expected to continue growing.

This is driven by its digitised consumer behaviour and attachment to mobile devices by the public to perform daily activities, digitalisation of businesses, and the implementation of digital transformation initiatives by the Singaporean government.

Regarding digitisation, Agmo aimed to help local small and medium enterprises through their platform-based services.

Tan was optimistic about the industry’s outlook while the Covid-19 pandemic has sped up the digital adoption rate for businesses.

“We have four or three business segments which allow mobile applications that can be provisioned, so we believe that these technologies will be more accessible to the public,” he added.

On the other hand, Agmo Academy is expected to generate more revenue while also serving as a platform to recruit new industry talents for the company.

“These courses will be designed to remain relevant in the foreseeable future as the application of the knowledge or skills required in the industry is projected to increase over time. 

“As a start, we intend to offer training courses on subjects comprising artificial intelligence, blockchain, chatbot, mobile programming, and web programming, as these syllabuses currently have commercial and practical value in the digital solution industry,” Tan explained.

Agmo will also include any emerging technology in its training courses to equip young talents with the necessary skills and industry expertise.

It will also be monitoring the progress and development of its students in terms of its technical skill sets which will help them narrow down the suitable pool of candidates worthy of joining the company.

It has also launched a blockchain-based remote participation and voting application known as Vote2U, which allows public listed companies to conduct general meetings virtually, and shareholders to perform online voting for resolutions proposed by the companies.

“We are dedicated to spearheading blockchain technology awareness and promoting its use in businesses, as we aspire to make it more accessible than ever before. 

“Our technical expertise and knowledge of blockchain technology, as well as extended reality, enables us to develop digital solutions that align with the current market demand,” Tan said.

With blockchain set to become Malaysia’s next biggest frontier, Agmo will continue focusing on this technology to further enhance its mobile and web application features, as well as keep up with the latest technology trends in the market for any opportunities.

Kenanga Investment Bank Bhd is Agmo’s principal advisor, sponsor, underwriter and placement agent for its IPO exercise.