RedPlanet marks LEAP Market debut with 77.8% premium at close
PETALING JAYA: RedPlanet Bhd delivered a solid performance on its maiden trading day on Bursa’s LEAP Market, closing at 32 sen for a 14 sen, or 77.8%, premium over its offer price of 18 sen with 1.2 million shares traded.
The geospatial solution provider opened trading at 22 sen, or a 22.2% premium over its offer price.
During the listing ceremony, its executive director Panjetty Kumaradevan Senthil Kumar stated the group is expecting a better growth in its bottom line and top line for FY21 supported by higher demand for its geographic information system (GIS) solutions.
He revealed that as at July 31, 2020 Redplanet had secured an orderbook of RM34.45 million, with over 65% to be delivered.
Moving forward, the group expects to further expand its presence by securing GIS contracts in Australia and the Asean region.
In the past, RedPlanet delivered use cases for utilities, infrastructure and agriculture customers in Malaysia, and expects to leverage its track record to secure similar projects in Australia.
Under the listing exercise, the group raised RM3.59 million from the placement of 19.93 million shares.
Of the proceeds, RM500,000 or 13.9% will be used to set up a research and development department to study GIS application in machine learning, artificial intelligence and IoT, with special focus on developing software related to asset identification and management.
Aside from that it will utilise RM2.02 million (56.2%) raised from the listing as general working expenses to strengthen its manpower to expand its business in Malaysia and overseas as well as to finance its day-to-day operations, RM220,000 will be put towards office renovation while the remaining RM850,000 will be used to defray its estimated listing expenses.