KUALA LUMPUR: Enterprise data management (EDM) specialist Kronologi Asia Bhd plans to spend the RM17.18 million raised from its initial public offering (IPO) on expansion, research and working capital.
En route to a listing on the ACE Market of Bursa Malaysia Securities Bhd, Kronologi is making a public issue of 59.25 million new shares at 29 sen a share.
“RM6 million will be for expansion in existing and developing markets, RM3.5 million for research and development, RM4.48 million for working capital and RM3.2 million for listing expenses,” said group chief executive officer Piti Pramotedham at the launch of the company’s prospectus yesterday.
A total of 4.74 million shares will be made available to the public; 7.11 million for eligible directors, employees and individuals who had contributed to the group’s success; and 47.4 million shares will be offered via public placement to identified investors.
The Singapore-based company has presence in Singapore, Malaysia, Thailand, the Philippines and Indonesia.
Kronologi believes its MSC status will enable it to seamlessly transfer its technical expertise in EDM to other countries.
“Large corporations are investing in developing socio-economic infrastructure as a result of economic transformation and developments.
“Demand for EDM-managed services is increasing as companies seek low capital expenditure and IT resources solutions that can provide good risk management in terms of data protection and business continuity,” Pramotedham said.
Kronologi is scheduled to be listed on December 15.
Bank Islam Malaysia Bhd has been appointed principal adviser, sponsor, sole underwriter and placement agent for the listing exercise.
According to Bank Islam managing director Datuk Seri Zukri Samat, Kronologi is the fourth IPO and first ACE Market listing advised by the bank.
Bank Islam sees EDM as a key driver in deploying business-critical information, streamlining business processes, operational efficiency and developing new models.
“We believe that Kronologi is well positioned to capitalise on the EDM market growth in Malaysia and regionally as the group has the products and services that are able to meet the needs of each market,” he added.