Revenue Group to raise RM20.6m from IPO

KUALA LUMPUR: Cashless payment solutions provider Revenue Group Bhd expects to raise RM20.61 million via its listing on the ACE Market of Bursa Malaysia Securities.
Revenue Group plans to use RM8.10 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 (EDC) terminals with the capability to accept quick response payments.
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 and the rest for defraying listing expenses for the IPO.
For its listing, 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 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.
Revenue Group managing director and group CEO Eddie Ng Chee Siong said the acquisition of new digital EDC terminals will support the company's business expansion in Malaysia, especially on its plans to increase the deployment of EDC terminals to physical store merchants given Bank Negara Malaysia's initiative to increase the adoption of cashless payments.