Revenue Group’s gearing ratio expected to improve post listing

KOTA KINABALU: Revenue Group Bhd’s (Revenue) gearing ratio has been projected by analysts to improve from 0.41-fold to 0.15-fold, after listing on Bursa Malaysia.

The business segments of Revenue, a cashless payment solutions provider in Malaysia which made its debut on the ACE market yesterday, are divided into deployment of Electronic Data Capture (EDC) terminals, electronic transaction processing as well as solutions and services related to payments infrastructure.

According to Rakuten Trade Sdn Bhd (Rakuten Trade), the electronic transaction processing is facilitated by Revenue’s flagship platform revPay to process transaction in various channels whether through EDC terminals, virtual payments or GR payment.

Rakuten Trade noted that of the total RM20.6 million initial public offering (IPO) proceeds, 39.3 per cent or RM8.1 million is earmarked for the purchasing of new EDC terminals with capability to accept QR payment while 19.6 per cent or RM4 million is allocated for the enhancement of revPAY and expansion of the IT team.

“Post listing, the company’s gearing ratio is expected to improve from 0.41-fold to 0.15-fold,” the research firm said.

“In addition to Revenue’s ongoing expansion, Bank Negara’s initiatives to push for a cashless society should push its net profit, excluding a one-off gain for financial year 2017 (FYI7), to expand by circa 32 per cent and 23 per cent in FY18 and FY19 respectively.”

The research firm further noted that revPay acts as the focal point linking its extensive range of customers including finoncial institutions such as AmBank and OCBC Bank, card schemes and e-money payment schemes like My Debit and Union Pay, and merchants together.