Revenue Group eyes ACE listing

PETALING JAYA: Cashless payment solutions provider Revenue Group Bhd (RGB) is looking to list on the ACE Market of Bursa Malaysia and will use the proceeds from its proposed initial public offering (IPO) for capital expenditure and regional business expansion.
In a draft prospectus exposure on the Securities Commission website, the group said the proceeds raised will also be used for development of new products, expansion of IT team and enhancement of its “revPAY” platform.
The group’s IPO involves a public issue of 55.71 million new shares, of which 11.14 million shares will be made available for Malaysian public, 11.14 million for eligible directors and employees who have contributed to the group’s success, while the remaining 33.4 million shares will be made available by way of private placement to selected investors.
There will also be an offer-for-sale of 16.7 million of existing shares via private placement to selected investors.
Established in 2003, RGB offers a single platform that provides multi-channel payment solutions to different customers including financial institutions, physical store merchants, online store merchants and e-payment money schemes.
Through its revPAY platform, the group offers a single platform which facilitates the acceptance of multiple payment methods, thereby providing cost effective solutions to its customers.
“revPAY is our flagship platform that provides the connectivity between front-end interface to back-end solutions. We provide products and services principally to local banks and non-bank institutions, physical store merchants and online store merchants,” it noted.
RGB’s products and services can be divided into three segments, namely deployment of electronic data capture terminals, electronic transaction processing and solutions and services related to payments infrastructure.
RGB’s businesses are currently concentrated in Malaysia. During the financial year ended 2015 to 2017, more than 97% of the group’s revenue is derived locally.
Its FY17 net profit jumped 54.6% to RM6.98 million from RM4.51 million in FY16.
The group plans to further expand its business into Cambodia and Myanmar, as it believes there is growth potential in the provision of electronic payment solutions in view that their electronic payments system is still at its growing stage.
M&A Securities Sdn Bhd has been appointed as the adviser, sponsor, underwriter and placement agent for the IPO.