KUALA LUMPUR (Aug 1): Agmo Holdings Bhd, which is slated to list on the ACE Market of Bursa Malaysia on Aug 18, aims to raise RM22.1 million from its initial public offering (IPO). 

The home-grown digital solution and application development specialist said the IPO involves the public issue of 85 million shares at an issuance price of 26 sen per share. 

Of the 85 million new shares, 16.25 million shares will be made available for the Malaysian public, while 62.25 million shares will be earmarked for private placement to selected investors, and 6.5 million shares will be made ready for eligible directors, key senior management, employees and business associates of the group. 

Meanwhile, the group will allocate RM9.47 million of the proceeds towards research and development, sales, marketing and business development. 

RM6.22 million will be set aside for working capital and related capital expenditure, and RM2.54 million will be allocated for establishing a training and development centre.

Another RM690,000 will be earmarked for regional expansion in Singapore, and RM3.18 million for listing expenses. 

“We are ready for the next stage of growth as we continue expanding our digital solution offerings. 

“We expect demand for digitisation to continue to rise in Malaysia, due to growing need for business digital transformation, and that includes the adoption of mobile and web applications in order to remain competitive and relevant within their respective industries,” said Agmo chief executive officer Tan Aik Keong. 

According to him, the mobile and web application development industry in Singapore is expected to continue its strong growth trajectory, driven by digitised consumer behaviour and attachment to mobile devices by the public. 

“This (regional expansion) will further increase Agmo’s business profile in the region,” he added. 

Kenanga Investment Bank Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO.