Radiant Group IPO oversubscribed by 6.7 times

KUCHING: Retail technology solutions provider Radiant Globaltech Bhd ( Radiant Group) received positive response for the public tranche of its Initial Public Offering (IPO) on the ACE Market of Bursa Malaysia Securities Berhad, with its public portion oversubscribed by 6.7 times.

Radiant Group received a total of 2,193 applications for 84.99 million shares with a total value of RM19.5 million. The public tranche entails a total of 11.0 million shares for application by the Malaysian public under the Group’s IPO scheme.

Managing director Paul Yap said the overall result of the IPO subscription from the Malaysian public and full takeup from investors for the private placement portion indicate an encouraging vote of confidence in our business model and ability to grow alongside the robust retail sector.

“We intend to use this IPO as a stepping stone for us to reach greater heights,” he said in a statement.

“Going forward, we intend to continue to focus on our retail hardware business while aggressively pursuing growth in our retail software business, with near term focon Indonesian market.”

Radiant Group is set to be listed on the ACE Market of Bursa Malaysia on 24 July 2018, at an issue price of RM0.23 per share and market capitalization of RM120.8 million.

The group boasts a prominent client base ranging from departmental stores and hypermarkets to retail chains and convenience stores, including Giant, Cold Storage, AEON Big, Parkson, Watsons, Guardian and 99 Speedmart.

According to the Industry Overview prepared by Smith Zander, the retail technology solutions industry in Malaysia is expected to grow at a compounded annual growth rate of 6.3 per cent from RM404.2 million in 2017 to RM456.4 million in 2019.

The uptrend is expected to be boosted by the growth of retail industry, higher automation, and continuous technological advancements of the retail technology solutions sector.

Radiant Group aims to raise RM29.5 million in proceeds, of which RM14.6 million would be allocated for business and capital expansion, while RM4.8 million will be used for working capital.

The balance proceeds comprise RM6.6 million for repayment of bank borrowings, and RM3.5 million for listing expenses. Alliance Investment Bank Berhad is the principal adviser, sponsor, sole underwriter, and placement agent for the IPO exercise.