Revenue shares for retailers oversubscribed

PETALING JAYA: Payment solutions provider Revenue Group Bhd saw its initial public offering (IPO) shares for retailers being oversubscribed by 11.22 times.

In a statement, the company said a total of 3,699 applications for 136.21 million new shares were received from the public for 11.14 million new shares made available for public subscription.

Revenue is seeking to list on the Ace Market of Bursa Malaysia at an IPO price of 37 sen a share.

Under the IPO exercise, the company has raised RM20.61mil from its public issue of 55.71 million new shares, of which 11.14 million new shares are for the Malaysian public via balloting and 11.14 million new shares for its eligible directors and employees.

The remaining 33.43 million new shares are earmarked for private placement to selected investors.

As part of its listing exercise, the existing shareholders of the company also made an offer for sale of 16.71 million shares by way of a private placement to selected investors.

Revenue said about 39.3% or RM8mil proceeds would be used mainly for capital expenditure to purchase 9,000 units of new digital electronic data capture terminals with the capability to accept quick response payments.

The remaining proceeds would be used to upgrade and enhance its “revPAY” platform, recruit additional information technology personnel, repay bank borrowings, facilitate business expansion to Cambodia and Myanmar and as working capital.

A total of RM2.7mil from the proceeds would be used to defray listing expenses for the IPO.