EVERGREEN Max Cash Capital Bhd (EMCC) saw its shares debut on the ACE Market of Bursa Malaysia with an opening price of 32 sen per share on Sept 26, marking a significant 33.33% premium over its IPO price of 24 sen. 

The debut saw a substantial opening volume of 37.7 million shares traded. 

EMCC’s ED and group MD Datuk Low Kok Chuan said the company’s listing signifies the beginning of a new chapter and enhances the visibility of the group’s brand among potential and new customers. 

“With the proceeds from the IPO at our disposal, we are well-equipped to execute our expansion strategy. This includes bolstering the cash capital of our existing ‘Pajaking’ pawnshops by RM30 million and increasing the number of ‘Pajaking’ pawnshops in our network,” he added. 

The IPO raised a total of RM64.2 million for EMCC, with allocations of RM20 million (31.1%) earmarked for pawnshop expansion and RM30 million (46.7%) for cash capital in the pawnbroking business. 

Additionally, RM4 million (6.2%) will be used for bank loan repayments, RM5.6 million (8.8%) for working capital, and the remaining RM4.6 million has been allocated for listing expenses. Based on EMCC’s most recent financial results for the first half of 2023 (1H23), the company achieved a net profit of RM7.21 million with revenues of RM52.03 million.

This marks a 23% increase in net profit compared to the same period in 1H22 when it was RM5.87 million, and a substantial 72% year-on-year revenue growth from RM30.26 million. 

Mercury Securities Group Bhd is the principal advisor, sponsor, underwriter, and placement agent for the listing. — TMR

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