KUALA LUMPUR: Ramssol Group Bhd aims to raise RM25.1 million from its initial public offering (IPO) on Bursa Malaysia on July 13, 2021, to partly fund its regional business expansion.
The human capital management (HCM) solutions and technology provider will utilise about RM2.5 million from the RM25.1 million IPO to expand the business to the Philippines.
RM6.3 million will be allocated for the expansion of Feet's and a third-party collaboration platform, Lark, in Southeast Asia.
The company is also allocating RM4.1 million for research and development (R&D) expenditure, RM7.6 million for working capital and the remaining RM4.6 million for listing expenses," Ramssol said in a statement issued in conjunction with its virtual prospectus launch today.
Feet is an employee engagement mobile app that helps nurture better relationships at the workplace amongst managers and peers and cultivate a healthier working environment.
Lark combines many essential collaboration tools in a single interconnected platform, including chat, calendar, creation and cloud storage.
According to Ramssol, the IPO exercise involves 78.064 million shares, comprising a public issue of 55.76 million new shares.
11.2 million new shares will be allocated for the Malaysian public and 5.6 million for eligible directors, employees and business associates of Ramssol and its subsidiaries.
38.96 million will be allocated for private placement to selected investors, and 22.304 million existing shares will be offered for sale through a private placement to selected investors.
Based on the IPO price of 45 sen, the company's total market capitalisation upon listing shall be around RM100.37 million.
Chief executive officer Cllement Tan said Ramssol had seen demand for digitalisation of human resource (HR) functions in Southeast Asia, so the company is expanding its regional footprint to the Philippines.
Tan said this move would strengthen its position as the leading regional HCM solution and technology specialist as it is already present in key regional markets.
"We will be enhancing Feet's with the inclusion of AI technology and developing bolt-on modules in HCM solutions through allocation for R&D activities.
"Artificial intelligent (AI) technology with predictive analytics capabilities enables employers to understand better employees who want to leave the organisation, optimise workforce strategies through benchmarking data, and getting the right action to drive business effectiveness," he said.
Meanwhile, Tan said Ramssol's HCM solutions and technology would help businesses stay ahead in this changing world for better business productivity and intelligent workforce management.
"We are embarking on an exciting new chapter for our Company with the launch of this prospectus.
"The digital transformation trends in HR and businesses have opened up many opportunities for us," he added.
Kenanga Investment Bank Bhd is the principal adviser, sponsor, underwriter and placement agent of the IPO.