KUALA LUMPUR (Sept 28): HeiTech Padu Bhd (KL:HTPADU) is acquiring a 30% stake in a privately held company, Souqa Fintech Sdn Bhd, for RM16.17 million.

In a bourse filing, the technology services provider said its wholly-owned subsidiary, Synergy Grid Sdn Bhd, has signed a share subscription agreement to acquire 10.78 million new ordinary shares in Souqa Fintech Sdn Bhd at RM1.50 apiece.

Souqa Fintech is an integrated online payment platform company that owns the Islamic payment gateway PayHalal.

HeiTech Padu plans to fund the investment with RM11 million in cash, while the remaining RM5.17 million will be realised via invoice detailing the scope of services required by Souqa Fintech.

Souqa Fintech is currently 58.29% owned by Asad Capital Sdn Bhd. Crescent Capital Sdn Bhd holds 16.7% of Souqa Fintech.

While developing its own online booking and payment services, HeiTech Padu noted that "certain initiatives" would be better achieved through strategic collaboration, partnerships or investments.

"Souqa Fintech's PayHalal, which caters to the specific demand of Islamic financial solutions, will enable HeiTech to expand further into the fintech industry, particularly within the Islamic-based e-commerce ecosystem, alongside its existing conventional market fintech solutions," the company said.

HeiTech Padu's largest shareholder is Datuk Seri Mohd Hilmey Mohd Taib, who controls a 14.1% stake via his private vehicle, Padujade Corporation Sdn Bhd, along with a 3.76% direct stake.

Rosetta Partners Sdn Bhd, a private vehicle of Kelantan's Sultan Muhammad V, holds a 15.9% stake in HeiTech Padu, according to the company’s annual report for the financial year ended December 31, 2023.

Other substantial shareholders include MyEG Services Bhd’s (KL:MYEG) wholly-owned unit, MyEG Capital Sdn Bhd (15%), and Redtone Digital Bhd (KL:REDTONE) (6.4%).

Shares of HeiTech Padu extended their rally to close at a record high of RM3.82 on Friday, giving the company a market capitalisation of RM425.35 million. Year to date, the stock has surged over 334%.

The Edge weekly in its Sept 16 edition quoted sources as reporting that HeiTech Padu Bhd has emerged as the front-runner to secure the RM1 billion National Integrated Immigration System (NIISe) contract, after being dropped from the list of three candidates in May.

HeiTech Padu is the incumbent operator of the NIISe project through its Malaysian Immigration System (MyIMMs), which has been in place since 1993.

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