Revenue Group posts premium in Bursa debut

PETALING JAYA: Cashless payment solutions provider Revenue Group Bhd ended its first day trading on the Ace Market of Bursa Malaysia today with a premium of 25.5 sen, over its offer price of 37 sen per share.
The shares opened at 55 sen and closed at 62.5 sen.
The counter, which reached a high of 69 sen and a low of 49.5 sen, was the most actively traded for the day, recording total volume of 188.3 million shares.
In a statement today, the group said it will leverage on the growing electronic payment (e-payment) transactions segment under the government’s push for a cashless society by 2020.
Its three business segments include the distribution, deployment, and maintenance of electronic data capture (EDC) terminals, electronic transaction processing services for credit and debit cards as well as solutions and services related to payment infrastructure.
Through its revPAY platform, it offers a single platform which facilitates the acceptance of payment transactions across various payment channels.
Its managing director and group CEO Eddie Ng Chee Siong said by 2020, there will be 800,000 EDC terminals in Malaysia, processing one billion transactions.
Ng said that this augurs well for the group as the deployment of more EDC terminals shall translate to higher revenue for the group, from the rental or sale of terminals as well as electronic transaction processing services.
Additionally, Ng said the group targets to expand its IT team to 50 employees from 35 currently within 24 months after listing to enhance the technology of its revPAY platform to keep up with global standards and cater to higher volume electronic transactions.
“The expansion of the IT team, which is core to our business, will help to support our business expansion and to pursue research and development on new products,” he added.
Currently, the group is working on QR Code payment for UnionPay in Malaysia and also researching on e-wallet solutions for issuers.
On its overseas expansion plan, the group said it has identified Cambodia and Myanmar, citing the e-payments system in these countries were still at the infancy stage and it could provide its e-payment solutions.
Revenue’s initial public offering (IPO) exercise was to raise RM20.61 million proceeds, of which RM8.1 million (39.3%) will be used mainly for capital expenditure to purchase approximately 9,000 units of new digital EDC terminals with the capability to accept QR Payment.
It will further utilise RM4.04 million (19.6%) to upgrade and enhance revPAY platform and recruit additional IT personnel; RM2.5 million (12.1%) to repay bank borrowings; RM1.5 million (7.3%) for business expansion to Cambodia and Myanmar; RM1.77 million (8.6%) for general working capital requirements while the remaining RM2.7 million (13.1%) to be used for listing expenses.