KUALA LUMPUR (May 27): Logistics software company Total Dynamic Holdings Bhd (KL:DYNAMIC) debuted at 27.5 sen on Bursa Malaysia’s Leading Entrepreneur Accelerator Platform (LEAP) Market on Monday.
This represents a premium of 7.5 sen or 37.5% against its reference price of 20 sen.
Total Dynamic is the first company to be admitted to the LEAP Market this year. Since its introduction in July 2017, 49 companies have been listed on the LEAP Market.
The LEAP Market is an adviser-driven platform designed to offer emerging companies, including small and medium enterprises, with greater fundraising access and visibility via the capital market. It is accessible only to sophisticated investors.
According to Total Dynamic, the company is not raising any funds from the listing, and there is no offer for subscription, or invitation to purchase the company’s shares. The listing involved a placement of its entire issued share capital of RM16.37 million comprising 250 million shares.
Total Dynamic has successfully raised RM5 million from a pre-listing share placement exercise to private investors and share issuance to employees to fund the company’s expansion, which include investment in new server infrastructure for an alternate data centre, as well as opening of three new sales and service centres in Melaka, Sabah and Kedah respectively.
The company offers fleet management systems comprising a suite of cloud-based software applications to track, monitor and manage information on the movement of commercial vehicles and their drivers using global positioning system (GPS) technology.
In addition, the company provides logistics and warehouse management systems to its customers, which are mainly operating in the transportation and logistics sector.
Total Dynamic’s promoter, substantial shareholder and executive chairman Wong Chew Fong, together with his son Wong Guan Wei, who is the company’s non-independent non-executive director, hold approximately 72.7% of the company’s total shares.
Company eyes transfer to ACE Market
At a press conference on Monday, Chew Fong announced that the group plans to transfer its listing to the ACE Market in the near future. “We have that plan, but we have no particular timeline,” he added.
When asked about the impact of the diesel subsidy reform on commercial vehicles, he said he is optimistic about the group’s growth prospects in developing and providing an integrated logistics management system.
“The [targeted] diesel subsidy is not happening yet. [there is] no actual data yet from the government [on when it will begin],” he said.
Instead, Chew Fong anticipates positive prospects for the sale of commercial vehicles, due to higher demand, as Malaysia's economy is expected to trend higher between 4% and 5%, lifted by a recovery in exports and resilient domestic expenditures, as well as improving trade and logistics activities.
Last week, Prime Minister Datuk Seri Anwar Ibrahim announced that the government will begin implementing targeted subsidies with diesel, affecting only consumers in Peninsular Malaysia. This rationalisation aims to bring diesel prices in Peninsular Malaysia closer to market levels, compared with the current subsidised price of RM2.15 per litre.
All of Total Dynamic’s major customers currently use its fleet management services through a monthly subscription model, determined by the number of activated GPS devices installed on their commercial vehicles. According to Chew Fong, Total Dynamic serves more than 2,000 transportation and logistics companies in Malaysia and Indonesia.
On the financial front, the group recorded a net profit of RM3.13 million for the financial year ended Dec 31, 2023 (FY2023), down from RM3.95 million for FY2022, due to lower licensing income and higher costs.
Full-year revenue, however, rose to RM12.6 million from RM11.79 million, driven by higher subscriptions to TDT GPS fleet management solutions — a real-time and cloud-based fleet management software — by local customers.