KUALA LUMPUR: Panda Eco System Bhd is pricing its shares at 16 sen each and hopes to raise RM17.5 million in an initial public offering (IPO) on Bursa Malaysia's ACE Market on November 27.
According to its prospectus, which was published today on the local stock exchange, the valuation gives the retail management solutions provider a market capitalisation of RM107.4 million, based on an enlarged share capital of 671.19 million shares upon listing.
Of the proceeds raised, RM2.7 million will be allocated for the development of new solutions, RM4.5 million for domestic and regional business expansion, RM1.7 million for the recruitment of additional engineers for its customer technical service department, and RM3 million for the expansion of its new headquarters.
The remaining RM5.6 million will be used for working capital purposes and listing expenses.
According to the prospectus, the IPO involves issuing 109.29 million new shares, representing 16.3 per cent of the enlarged share capital.
Of this total, 33.56 million, or 5.0 per cent of the enlarged share capital is meant for subscription by the Malaysian public, with half of it for ordinary public investors and the remaining half for Bumiputera public investors.
For the remaining portion, 42.77 million shares, or 6.4 per cent of the enlarged share capital, are reserved for eligible persons like directors or employees, and the remaining 32.95 million shares will be sold via private placement.
Existing shareholders also offered to sell 61.81 million shares, representing 9.2 per cent of the enlarged share capital.
Panda Eco executive director and chief executive officer Loo Chee Wee said the company aims to simplify and empower its customers' retail management, facilitating efficient expansion and scalability.
"With the listing status and proceeds from the IPO, we are committed to ongoing growth, innovation, and sustainable profitability.
"This IPO represents a new chapter in our journey, providing us with the platform to move forward with greater velocity and the opportunity to build long-term value for our stakeholders.
"I am confident that we will continue to thrive and push boundaries, consistently delivering solutions that exceed our customers' expectations," said Loo.
M&A Securities Sdn Bhd is the IPO's adviser, sponsor, underwriter, and placement agent.