KUALA LUMPUR: Retail technology solutions provider Radiant Globaltech Bhd's offer of 11 million new shares at 23 sen a share to the public was oversubscribed by 6.73 times.
There were 2,193 applications for 84.98 million from the public, it said on Thursday, ahead of its listing on the ACE Market on July 24.
Its managing director Paul Yap Ban Foo said the subscription from the Malaysian public and full take-up from investors for the private placement portion “indicate an encouraging vote of confidence in our business model and ability to grow alongside the robust retail sector”.
Radiant group’s retail technology solutions are used in the retail sector to automate customers’ operations, in order to increase efficiency and reduce costs.
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Its retail technology solutions are used for capturing and processing payments (i.e. POS), inventory management, analytics and reporting, as well as sales and marketing (i.e. customer loyalty management).
“We intend to continue to focus on our retail hardware business while aggressively pursuing growth in our retail software business, with near term focus on Indonesian market,” Yap said.
Its clients include department stores and hypermarkets to retail chains and convenience stores, including Giant, Cold Storage, AEON Big, Parkson, Watsons, Guardian and 99 Speedmart.
According to the industry overview prepared by Smith Zander, the retail technology solutions industry in Malaysia is expected to grow at a compounded annual growth rate of 6.3% from RM404.2mil in 2017 to RM456.4mil in 2019.
The positive outlook will be boosted by the growth of retail industry, higher automation, and continuous technological advancements of the retail technology solutions sector.
Under the listing exercise, Radiant Group aims to raise RM29.5mil, of which nearly half or RM14.6mil would be for expansion and RM4.8mil for working capital.
The remaining RM6.6mil will be used to repay bank borrowings and RM3.5mil for listing expenses.
Alliance Investment Bank Berhad is the principal adviser, sponsor, sole underwriter, and placement agent for the listing exercise.
Read more at https://www.thestar.com.my/business/business-news/2018/07/12/radiant-globaltech-public-offer-oversubscribed-6pt7-times/#e6BlU6qMZDQgREKH.99
