Parlo’s shares jump 80% on first day of trading

PETALING JAYA: Parlo Bhd, the result of a reverse takeover by Parlo Tours Sdn Bhd of Cybertowers Bhd, was the top gainer on the local stock exchange closing 80% higher on its first day of trading.

The travel management and services group resumed trading on the ACE Market of Bursa Malaysia Securities Bhd after a regularisation plan for Cybertowers was completed on Jan 17, 2018.

The group’s share price jumped 8 sen to trade at 18 sen yesterday, with some 25.7 million shares changing hands.

Cybertowers acquired Parlo Tours for RM25 million through an all share deal, which came with a profit guarantee of not lower than RM8.6 million combined, for the financial years ended Dec 31, 2016 and Dec 31, 2017 (FYE16 and FYE17).

Based on the average profit guarantee of RM4.3 million per annum, this translates to a price-to-earnings ratio (PER) of 5.8x. The regularisation plan also included a private placement of 84 million Parlo shares at the issue price of RM0.10 per share, to raise funds, mainly for working capital of the group.

Moving forward, Parlo has on-going plans to further develop its leisure and corporate travel business through participation in more trade exhibitions and events, increasing advertising and promotional activities as well as expanding its sales and distribution channels.

In addition, the group has plans to increase their participation in the ecommerce platform, enabling online travel reservations which will allow it to engage in cross border travels and thereby a larger market segment.