KUALA LUMPUR (Nov 27): Electronic reload and bill payment services provider RichTech Digital Bhd has inked an underwriting agreement with KAF Investment Bank in conjunction with its planned initial public offering (IPO) exercise on the ACE Market of Bursa Malaysia.
The IPO is to comprise a public issue of 54.66 million new shares and an offer for sale of RM25.31 million existing shares at a price to be determined later. The listing offers investors up to a 39.5% stake in the company.
KAF, in its role as principal adviser, sponsor, underwriter and placement agent, will underwrite 11.67 million new shares allocated for the Malaysian public and eligible individuals.
Under the IPO’s public issue, RichTech will make 10.12 million new shares available for the Malaysian public and set aside 1.55 million new shares for eligible persons.
The company will also issue 42.99 million new shares to select investors through private placement.
Part of the proceeds will go towards the acquisition of a new office that could accommodate its headquarters and branch office under one roof with an estimated built-up area of up to 6,000 square feet.
The company will use the rest of the proceeds as general working capital to buy stocks for electronic reload services which account for more than 70% of its annual purchases, and defray estimated listing expenses.
Proceeds from the offer-for-sale of existing shares will, meanwhile, accrue entirely to selling shareholders, including managing director Lee Teik Keong and substantial shareholder Yau Ming Teck, who will cut his holdings to 4.61% post-IPO from 9.70%.