Revenue Group sees busy year ahead after ACE Market listing
KUALA LUMPUR: Revenue Group Bhd is set for a busy year ahead once it is listed on Bursa Malaysia’s ACE Market next month, expecting to raise RM21 million.
The multi-channel payment solutions provider’s services are divided into three segments, namely deployment of Electronic Data Capture (EDC) terminals, electronic transaction processing and solutions and services related to payment infrastructure.
The firm mainly works with financial institutions, physical and online store merchants, and e-money payment schemes.
As at the end of last year, Revenue Group’s main customers were an unidentified China-based firm, which contributed a total of RM6.77 million in revenue, AmBank Group Bhd (RM4.1 million) and First Data Merchant Solutions (Malaysia) Sdn Bhd (RM2.6 million).
Others include OCBC Bank (Malaysia) Bhd and United Overseas Bank (Malaysia) Bhd.
Managing director and group chief executive officer Eddie Ng Chee Siong said it was in discussions with new players.
He is confident there would be double-digit growth from its China-based customers.
“Our total transactional value for the China online marketplace from June 2015 to June 2017 was at RM494 million collectively. We have seen growth within this space, year-on-year, and believe the contribution this year would be in the double-digit range.”
He said Revenue Group was targeting Malaysia-based customers, given its existing network and infrastructure.
It plans to use 39.3 per cent (RM8.10 million) raised from the initial public offering as capital expenditure to buy 9,000 new EDC terminals with the capability to accept Quick Response payment, and 7.3 per cent (RM1.5 million) for business expansion in Cambodia.
The company is issuing 55.71 million new shares at 37 sen per share, of which 11.14 million new shares will be made available to Malaysians via balloting, during its proposed listing on July 18.
A total of 11.14 million new shares have been allocated for eligible directors and employees, and the remaining 33.43 million new shares are earmarked for private placements to selected investors.