KUALA LUMPUR (May 17): Two years after it was listed on the ACE Market of Bursa Malaysia, pawnshop operator Pappajack Bhd is seeking a transfer to the Main Market.

The group said it has met the profit requirements for the move, having posted an adjusted profit after tax (PAT) of RM18.63 million for the year ended Dec 31, 2023 (FY2023), and an aggregate PAT of RM35.11 million for the past three years between FY2021 and FY2023.

This meets the Securities Commission Malaysia’s requirements, which mandates an aggregate PAT of at least RM20 million over the past three financial years, with a PAT of at least RM6 million for the most recent year.

In a bourse filing on Friday, Pappajack said it is in a healthy financial position, noting that it had recorded negative net cash from operating activities for FY2022 and FY2023, and has no accumulated losses.

As at end-December 2023, Pappajack ’s current assets stood at RM272 million, while its current liabilities totalled RM34.44 million.

The group had cash and bank balances of RM49.78 million and borrowings of about RM38.53 million. Its gearing ratio stood at 0.16 times.

On its public shareholding spread, Pappajack said 38.57% of its total number of issued shares was held by 1,446 public shareholders, holding not less than 100 shares each, which is above the requirement of 25%.

PappaJack said the listing transfer, expected to be completed in the third quarter of 2024, will enhance its credibility and reputation, and accord the group with greater recognition and acceptance among investors.

Malacca Securities has been appointed as the principal adviser for the transfer exercise.

Pappajack, which was listed in April 2022 after offering its shares to the public at 30 sen per share, closed up two sen or 2% at RM1.01 on Friday, bringing the group a market capitalisation of RM776 million.