AGMO 0258 AGMO HOLDINGS BERHA makes strong debut on ACE market of Bursa Malaysia

 AGMO 0258 AGMO HOLDINGS BERHA makes strong debut on ACE market of Bursa Malaysia

Agmo Holdings Bhd's listing ceremony on the ACE Market of Bursa Malaysia today. (From left) Agmo Holdings Bhd independent non-executive directors Dr Lau Cher Han, Datin Yap Shin Siang and Fairuz Azrul, non-independent non-executive chairman Datuk Andy Low

KUALA LUMPUR: Homegrown digital solutions and application development specialist Agmo Holdings Bhd (AHB) registered a positive start on the ACE market of Bursa Malaysia, with 16.25 million new shares oversubscribed by 120.15 times.

The company debuted on the ACE Market of Bursa Malaysia today at RM0.80, representing a premium of 207.7 per cent over its initial public offering (IPO) price of RM0.26.

Additionally, the 6.50 million shares made available to eligible directors, key senior management, employees, and business associates were fully subscribed, while the 62.25 million shares made available by way of a private placement to selected investors had been fully placed out.

Chief executive officer Tan Aik Keong said the company's successful IPO had given it the significant financial flexibility to pursue strategic objectives of expanding operations in Malaysia and enlarging its footprint in Southeast Asia by expanding into Singapore.

"With demand for digital solutions, including mobile and web applications, among businesses of all sizes growing at an accelerated pace, many new opportunities have emerged for our company.

"We have thus laid out several initiatives to capitalise on this optimistic scenario and grow our customer base in the local and regional markets," he said in a statement today.

Of the RM22.10 million in proceeds raised from the IPO, AHB has allocated RM9.47 million for research and development (R&D) investments, sales, marketing, and business development teams.

The allocation is also for the dedicated technical support and maintenance services division.

Further, the company will invest RM6.22 million in working capital and related capital expenditure to expand its mobile and web application development and digital platform-based services and set up a new office.

Approximately RM2.54 million of the proceeds will be used to establish a training and development centre known as Agmo Academy. At the same time, RM0.69 million has been allocated for regional expansion to Singapore, and the remaining RM3.18 million for listing expenses.

"With the proceeds raised from the IPO, we will expedite our growth initiatives and continue our efforts to put the company in a stronger position to pursue future opportunities, even as we continue to innovate our product offerings," Tan said.

"We believe that the listing will give the company more recognition locally and regionally and enhance our reputation among customers and potential leads while boosting our appeal as an employer so that we can continue to attract and retain talented and productive employees," he said.

Kenanga Investment Bank Bhd is the principal adviser, sponsor, underwriter and placement agent of AHB's IPO.

https://www.nst.com.my/business/2022/08/823554/agmo-holdings-makes-strong-debut-ace-market-bursa-malaysia