KUALA LUMPUR (Sept 28): RedPlanet Bhd has launched its initial public offering (IPO) at 19 sen per share as part of the information technology services firm’s listing transfer from the LEAP Market.
The ACE Market IPO will raise RM15.2 million, of which RM13.3 million will go to the company for expansion and operations, according to the official prospectus released on Monday. The remaining RM1.9 million will go to a private vehicle controlled by a group of major shareholders of RedPlanet.
Applications for the IPO will close on Oct 8 and it is scheduled to list on Oct 22.
RedPlanet mainly provides geographical data analytics and safety system to detect human intrusion on railway platforms as well as trades software and hardware required for the services. The company was first listed on the LEAP Market in August 2020.
Most of its revenue came from Malaysia though 15% of its income are from overseas markets such as India, Brunei, the Philippines, Saudi Arabia, the United Arab Emirates and Singapore.
The company has set aside RM8.12 million or 61% of the IPO proceeds, for procurement of materials and subcontractor services, performance bonds, and business development and marketing activities, in support of the company's participation in larger-scale projects.
RedPlanet is also allocating 18% of the funds raised towards working capital, including software purchases, administrative expenses and other operating expenses related to ongoing project commitments. The rest is earmarked for expenses tied to the transfer listing.
“Our proposed move from the LEAP Market to the ACE Market marks an important new chapter. And with that opportunity comes responsibility. Our shareholders will ultimately judge us not by the story we tell today, but by what we deliver tomorrow,” managing director Lian Wah Seng said in his speech at the launch of its prospectus.
Meanwhile, PKSen Ventures Sdn Bhd — held by major shareholders Panjetty Kumaradevan Senthil Kumar, Ehanthalingam Gopaul, and Chithambaram Ponnalagu — is the shareholder cashing out part of its stake under the IPO. Post-listing, its equity will be diluted from 28.66% to 21.34%.
Senthil Kumar serves as RedPlanet’s non-independent executive director and is also the chief executive officer of GIS Group, the company’s geospatial arm.
Artificial intelligence (AI) isn’t a threat to RedPlanet as it is an “amplification tool... it lets us get more done with the same number of people today, and even more as we grow,” he said in his speech at the same event.
UOB Kay Hian is the principal adviser, sponsor, underwriter and placement agent for the IPO.