Red Ideas issuing shares at 35 sen each for LEAP market listing

PETALING JAYA: Software products and solutions provider Red Ideas Holdings Bhd, which will be listed on Bursa Malaysia’s Leading Entrepreneur Accelerator Platform (LEAP) market on Nov 8, is issuing its shares for placement at 35 sen per share.

The group said in its information memorandum released on Oct 17, it will be raising RM7 million by placing out shares representing 20% of its share capital, equivalent to over 20 million shares.

After the deduction of listing expenses, which amounts to RM850,000, the group will be left with RM6.15 million in total proceeds.

Red Ideas plans to deploy RM4.15 million for general working capital, which includes marketing, advertisement and promotions, salaries, hiring sales staff, expansion of My Services and general working capital.

The group has earmarked RM1 million each for research and development, office expenses and renovation, and new branch offices .

Red Ideas products includes Graaab Platform a mobile application based community solutions platform that facilitates communication between stakeholders in residential or commercial communities, Graaab JagaApp and MyServices. It is now in the midst of developing Graaab ProApp. The group’s principal market is in Malaysia with 83 customers and six service providers on its platform.

Its co-founder non-independent nonexecutive director and majority shareholder, Michael Loke, who currently holds 31.5% will see his stake reduced to 25.2% after the listing.