KUALA LUMPUR (Nov 8): Panda Eco System Bhd is pricing its shares at 16 sen apiece, seeking to raise some RM17.5 million through an initial public offering (IPO) on Bursa Malaysia’s ACE Market by end of this month.
The valuation gives the retail management solutions provider a market capitalisation of RM107.4 million, based on an enlarged share capital of 671.19 million shares upon listing, according to its prospectus published on the local stock exchange on Wednesday.
The IPO involves issuing 109.29 million new shares, representing 16.3% of the enlarged share capital.
Of this total, 33.56 million or 5.0% of the enlarged share capital are meant for subscription by the Malaysian public, whereby half of them are for ordinary public investors and the remaining half for Bumiputera public investors.
For the remaining portion, 42.77 million or 6.4% of enlarged share capital are reserved for eligible persons like directors or employees, and the balance 32.95 million shares will be sold via private placement.
Existing shareholders also offered to sell 61.81 million shares, representing 9.2% of the enlarged share capital.
Prior to the IPO, Panda Eco has been controlled by its chief executive officer Loo Chee Wee and chief technology officer Tay Kheng Seng via their private vehicle Goldcoin Capital Sdn Bhd, which owns a 94.2% shareholding in the company.
Upon public listing, Goldcoin’s shareholding will be diluted to 69.6%.
Of the proceeds raised, 17.2% will be used for expanding the company’s headquarters, 16.2% for working capital, 15.6% for estimated listing expenses, 15.5% for research and development, 15.1% for establishing additional service hubs and workforce expansion, while the remaining 10.8% for regional expansion in Asean.
For the first half of its financial year ending Dec 31, 2023 (1HFY2023), the group reported a net profit of RM2.75 million, a slight increase of 2.7% from RM2.67 million a year ago, while revenue grew 22% to RM10.8 million from RM8.88 million.
M&A Securities Sdn Bhd is the IPO’s adviser, sponsor, underwriter and placement agent.