MERCURY Securities Bhd, set to debut on the ACE Market of Bursa Securities on Sept 19, 2023, posted a net profit of RM3.73 million for the third quarter ending July 31, 2023 (3Q23), primarily driven by margin income generated from its stockbroking and corporate finance segments. 

The firm disclosed that its quarterly revenue reached RM7.26 million, according to a filing submitted to Bursa Malaysia. 

Additionally, for the nine-month period ending in July, the cumulative net profit stood at RM8.81 million. 

The profit included gains derived from proprietary trading, other income-mainly interest income generated from placing funds on a repo basis with financial institutions and realised gains on foreign-exchange transactions, as detailed by Mercury Securities. 

The revenue for the first nine months of the fiscal year 2023 (9M23) reached RM18.7 million, the company added. 

Looking ahead, Mercury Securities has ambitious plans to expand its stockbroking services, encompassing trade execution, margin financing facility services, underwriting and placement services, nominee and custodian services, and related offerings. 

The company intends to implement a digital roadmap strategy to enhance its online trading platforms, introducing new features to enhance the trading experience for clients. 

These efforts aim to support client acquisition endeavours and boost the company’s market share in terms of stock execution value and volume.

In preparation for its listing on the ACE Market, Mercury Securities plans to raise RM39.27 million through the issuance of 157.09 million shares at an issue price of 25 sen per share as part of its IPO exercise.

Of the proceeds generated, RM26.86 million will be earmarked for the development of Mercury Securities’ margin financing facility services. 

Another RM2.88 million will be allocated to enhancing the company’s digitalisation programme and marketing activities, with a focus on its stock-broking business and operations. 

Furthermore, the group will set aside RM4.63 million for working capital needs, while the remaining RM4.9 million will be designated to cover estimated listing expenses. 

• This article first appeared in The Malaysian Reserve weekly print edition