Revenue to raise RM20.6m from IPO

KUALA LUMPUR: Cashless payment solutions provider Revenue Group Bhd expects to raise RM20.61 million via its proposed listing on the ACE Market of Bursa Malaysia Securities Bhd.

Revenue Group plans to use RM8.1 million (39.3%) raised from the initial public offering (IPO) as capital expenditure for the purchase of 9,000 units of new digital electronic data capture terminals with the capability to accept quick response payment.

It will also utilise RM4.04 million (19.6%) to upgrade and enhance revPay platform and recruit additional information technology personnel; RM2.5 million (12.1%) to repay bank borrowings; RM1.50 million (7.3%) for business expansion to Cambodia and Myanmar; RM1.77 million (8.6%) for general working capital requirements while the remaining RM2.7 million (13.1%) to be used to defray listing expenses for the IPO.

Under the listing exercise, Revenue Group is issuing 55.71 million new shares at 37 sen per share, of which 11.14 million new shares will be made available to the Malaysian public via balloting; 11.14 million new shares for its eligible directors and employees who have contributed to the success of the group while the remaining 33.43 million new shares are earmarked for private placement to selected investors.

In addition, the existing shareholders will also make an offer for sale of 16.71 million shares by way of private placement to selected investors.

Based on the enlarged share capital of 222.85 million shares, Revenue Group is expected to have a market capitalisation of RM82.45 million.

The IPO is open for subscription from today to July 6 and the listing is expected to be on July 18. M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for the IPO exercise.