AGMO AIMS TO RAISE RM22 MLN FROM IPO

KUALA LUMPUR, Aug 1 (Bernama) -- Homegrown digital solutions and application development specialist Agmo Holdings Bhd (Agmo) aims to raise RM22.10 million from its initial public offering (IPO) following its listing on Bursa Malaysia’s ACE Market slated for Aug 18.

At an issue price of 26 sen per share and an enlarged share capital of 85 million shares, the group will have a market capitalisation of RM84.5 million on listing.

Agmo chief executive officer Tan Aik Keong said the company aims to raise proceeds mainly for its strategic expansion to meet the rising demand for digitalisation. 

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“We are ready for the next stage of growth as we continue expanding our digital solution offerings.

“We expect the demand for digitalisation will continue to rise in Malaysia due to the growing need for business digital transformation, and that includes the adoption of mobile and web applications in order to remain competitive and relevant within their respective industries,” he told reporters at the launched of company’s IPO prospectus today. 

Agmo has allocated RM9.47 million from the RM22.10 million IPO proceeds for investment in a research and development team, sales, marketing, and business development team as well as technical support and maintainance services division. 

It has assigned RM6.22 million for working capital and related capital expenditure for mobile and web application development expansion and digital platform-based services as well as to set up a new office.

About RM2.54 million of the IPO proceeds will go towards setting up a training and development centre, Agmo Academy, while RM0.69 million will be allocated for its regional expansion to Singapore; the remaining RM3.18 million is for listing expenses. 

The company is also looking at enlarging its geographical footprint in Southeast Asia by expanding into Singapore, further increasing its regional business profile.

“The mobile and web application development industry in Singapore is expected to continue its strong growth trajectory, driven digitalised consumer behaviour and attachment to mobile devices by the public to perform daily activities, digitalisation of businesses, and the implementation of digital transformation initiatives by the Singapore government,” he added. 

The principle adviser, sponsor, underwriter and placement agent of the IPO is Kenanga Investment Bank Bhd. Kenanga’s executive director, head of group investment banking and Islamic banking Datuk Roslan Tik said the exercise will stimulate Agmo’s growth momentum in the local market and enlarge its geographical footprint in the region with Singapore being its first port of call. 

“We have no doubt that taking the essential step to an IPO will definitely reflects positively on Agmo’s corporate profile as it plans to keep up with the latest technologies and further expand its business capabilites,” he said. 

-- BERNAMA