KUALA LUMPUR (June 18): Cybersecurity services provider LGMS Bhd (KL:LGMS), which was listed on Bursa Malaysia's ACE Market in June 2022, on Wednesday proposed to transfer its listing to the Main Market, saying it has met the profit requirements for the transfer.

The company said it made an aggregated consolidated profit after tax (PAT) of RM35.11 million over the past three financial years. It reported a PAT of RM12.34 million for the year ended March 31, 2024 (FY2024), RM11.22 million for FY2023 and RM11.55 million for FY2022.

This, it said in a bourse statement, meets the Securities Commission Malaysia’s Equity Guidelines, which require that a company seeking to transfer its listing from the ACE Market to the Main Market to have an aggregate PAT of at least RM20 million over the past three financial years, and at least RM6 million for the most recent year.

LGMS, whose share price has dropped over 26% year-to-date, said it has also “met the healthy financial position requirements of the equity guidelines”, with its sufficient level of working capital for at least 12 months and no accumulated losses based on its latest audited balance sheet.

As at end-December 2024, its current ratio stood at 7.24 times, with current assets at RM82.17 million and current liabilities at RM11.35 million. It had cash of RM67.94 million, with fixed deposits totalling RM120,000.

“The proposed transfer will enhance the company’s credibility and reputation, better reflect the existing institutional shareholding base and at the same time accord LGMS greater recognition and appeal amongst investors,” said LGMS.

The transfer listing proposal is expected to be completed by the fourth quarter of 2025.

Shares of LGMS were not traded on Wednesday. The stock last closed at 93 sen, giving the company a market capitalisation of RM424.08 million.