Radiant Group targets continued expansion into South East Asia
KUCHING: Retail technology solutions provider Radiant Globaltech Bhd ( Radiant) targets to continue expansion in SEA region with near term focus on the Indonesian market.
Speaking at the IPO prospectus launch yesterday, Radiant Group’s managing director Paul Yap said that the group’s proposed listing on the ACE Market of Bursa Malaysia Securities Berhad (Bursa Malaysia) aimed to extend Radiant Group’s regional footprint and raise funds to support its expansion plans.
“We are mindful of the economic growth and rapid urbanization in South East Asia, which create a conducive environment for the retail sector,” he said in a statement yesterday.
“The anticipated conversion from manual systems to automated retail technology solutions presents growth opportunities for us.”
“We are armed with our experience in Vietnam and Cambodia to continue our expansion plans in SEA region, with near term focus on Indonesia’s booming retail market.”
“We also intend to aggressively pursue growth in our in-house retail software management solutions, namely AX Retail B2B Portal and AX Retail Consignment Portal, and leveraging on our large customer base of hardware customers to cross-sell our software products.
“We aim to enhance operational efficiency, facilitate seamless retail management processes, and enable efficiency and transparency within the supply chain of retail clientele.”
The group also plans to establish a regional sales support team to raise awareness and enhance sales for the Group’s software products.
Radiant Group incorporated its Vietnam and Cambodia office in 2006 and 2013 respectively. Since then, the Group has established a reputable track record, securing sales from Parkson Vietnam, AEON Vietnam, and AEON Cambodia, amongst others.
The group’s Vietnam and Cambodia subsidiaries contributed a total of RM10.6 million or 13.1 per cent of revenue in the financial year ended December 31, 2017 (FY17). This represented an increase of more than threefold from RM2.9 million in FY15.
Radiant intends to set up a regional sales support team to support the Group’s expansion.
According to Industry Overview prepared by Smith Zander, Radiant Group captured 20 per cent market share of Malaysia’s retail technology solutions industry worth RM404.2 million in 2017.
The retail technology solutions industry in Malaysia stood at RM404.2 million in 2017, and is expected to grow at a compound annual growth rate of 6.26 per cent to RM456.4 million in 2019.
The uptrend is set to be driven by the growth of retail industry, higher automation, and continuous technological advancements of the retail technology solutions sector.
Radiant Group’s IPO entails the issuance of 128.1 million new shares at RM0.23 per share.
Of the 128.1 million new shares, 11 million shares will be for application by the Malaysian public; and 21.1 million shares for application by eligible directors, employees and persons who have contributed to the success of the group, while the remaining 96 million shares will be allocated for private placement to selected investors.
There would also be an offer for sale where 12 million existing shares will be allocated for private placement to selected investors.
Of the total IPO proceeds of RM29.5 million to be raised, RM11.6 million would be utilized for business and capital expansion, RM3 million would be allocated for the expansion of the group’s retail software business, while RM4.8 million would be for working capital.
Additionally, RM6.6 million would be slated for the repayment of bank borrowings with remaining RM3.5 million applied towards defraying of listing expenses. With the prospectus launch, applications for Radiant Group’s IPO opened yesterday, and will close on Tuesday, July 10, 2018 at 5pm.
Barring unforeseen circumstances, Radiant Group targets to list on the ACE Market of Bursa Malaysia on July 24, 2018. Alliance Investment Bank Bhd is the principal adviser, sponsor, sole underwriter, and placement agent for the IPO exercise.