Stel­lar de­but for tech­nol­ogy firm Red­planet

The Star Malaysia - StarBiz - - News - By THOMAS HUONG huong@thes­tar.com.my

KUALA LUMPUR: Tech­nol­ogy com­pany Red­planet Bhd made a strong de­but on the LEAP Mar­ket on Mon­day, clos­ing 78% higher at 32 sen com­pared to its ini­tial pub­lic of­fer­ing (IPO) price of 18 sen, with some 1.2 mil­lion shares be­ing traded.

Red­planet is a Geo­graphic In­for­ma­tion Sys­tem (GIS) or Geospa­tial so­lu­tions provider.

The com­pany’s GIS so­lu­tions as­sist cus­tomers in ac­tiv­i­ties such as lo­ca­tion search, nav­i­ga­tion, lo­gis­tics rout­ing, cus­tomer tar­get­ing and as­set man­age­ment.

The GIS so­lu­tions help clients cap­ture, store, an­a­lyse, in­ter­pret, man­age and present spa­tial or geo­graphic data to make bet­ter busi­ness de­ci­sions.

Red­planet serves sec­tors such as power util­i­ties, in­for­ma­tion tech­nol­ogy, en­gi­neer­ing, ICT in­fra­struc­ture, smart de­vice so­lu­tions, and oil and gas (O&G).

Speak­ing via a video call at a press brief­ing af­ter the list­ing cer­e­mony, ex­ec­u­tive di­rec­tor Pan­jetty Ku­ma­rade­van Senthil Ku­mar said in light of the global Covid-19 pan­demic, there was a slow­down in the busi­ness en­vi­ron­ment.

“How­ever, we do ex­pect things to pick up in the longer term.”

Pan­jetty said the com­pany ex­pects a bet­ter per­for­mance for the fi­nan­cial year end­ing June 30, 2021 due to a strong or­der book.

Red­planet had a Rm34.45mil or­der book with more than 65% to be de­liv­ered as at July 31, 2020.

“We be­lieve there is po­ten­tial for the ap­pli­ca­tion of GIS in the de­vel­op­ment of so­lu­tions for smart cities, the In­ter­net of Things (IOT), mo­bile map­ping and au­ton­o­mous cars,” he stated.

Red­planet chair­man Lian Wah Seng said about 70% of the com­pany’s con­tracts were in Malaysia, with the rest over­seas.

He also said the com­pany’s projects were mainly in power util­i­ties, fol­lowed by the telecom­mu­ni­ca­tions in­dus­try, and O&G sec­tor.

“We have projects in the Philip­pines and Sin­ga­pore, so we plan to ex­pand in th­ese coun­tries too,” said Lian.

The com­pany has also iden­ti­fied the util­i­ties, in­fra­struc­ture and agri­cul­ture in­dus­try ver­ti­cals for its en­try and ex­pan­sion in Aus­tralia.

Un­der the list­ing ex­er­cise, Red­planet raised Rm3.59mil from the place­ment of 19.93 mil­lion shares at 18 sen per share to se­lected in­vestors.

Of the to­tal IPO pro­ceeds, RM500,000 (13.9%) will be used to study GIS ap­pli­ca­tion in ma­chine learn­ing, ar­ti­fi­cial in­tel­li­gence (AI) and IOT, and de­vel­op­ing software re­lated to as­set iden­ti­fi­ca­tion and man­age­ment.

An­other Rm2.02mil (56.2%) will be work­ing cap­i­tal to strengthen its staff force and finance day-to-day op­er­a­tions; RM220,000 (6.1%) for of­fice ren­o­va­tion while the re­main­ing RM850,000 (23.7%) is to de­fray list­ing ex­penses.

It stated in its web­site that its mis­sion was to as­sist its cus­tomers make unique, en­dur­ing and mean­ing­ful im­prove­ments in their per­for­mance and in that process build a com­pany that en­tices, ex­hil­a­rates and en­gages ex­cep­tional peo­ple.

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