KUALA LUMPUR (Oct 22): RedPlanet Bhd (KL:RPLANET) staged a strong ACE Market debut on Thursday following the information technology services firm’s listing transfer from the LEAP Market.
The stock opened at 27 sen, up eight sen or 42% from its initial public offering (IPO) price of 20 sen per share. The stock climbed to as high as 28.5 sen and was trading at 27 sen at 9.20am, as more than 36 million shares exchanged hands.
Market capitalisation was RM106 million based on the last price.
The strong gain comes on the heels of a scramble for RedPlanet’s shares with its IPO oversubscribed more than 85 times by retail investors.
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.
“Today, our ACE Market listing opens another chapter,” managing director Lian Wah Seng said in a statement post-listing. “It gives RedPlanet greater visibility, access to a broader investor base and additional resources for growth.”
The IPO raised RM15.2 million, of which RM13.3 million will go to the company for expansion and operations.
The company has allocated 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 has earmarked 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 allocated for expenses tied to the transfer listing.
The remaining RM1.9 million went to PKSen Ventures Sdn Bhd, a private vehicle controlled by RedPlanet’s major shareholders Panjetty Kumaradevan Senthil Kumar, Ehanthalingam Gopaul and Chithambaram Ponnalagu.
UOB Kay Hian is the principal adviser, sponsor, underwriter and placement agent for the IPO.
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