KUALA LUMPUR (March 4): OpenSys (M) Bhd has proposed to transfer the listing of the automated-teller machine and cheque deposit machine supplier to Bursa Malaysia's Main Market, from the ACE Market, in a move which signifies the growth, profitability and financial strength of the group.

In a Bursa filing on Friday (March 4), OpenSys said the company has met the profit track record requirements for a transfer to the Main Market of Bursa.

"As at the LPD (latest practicable date — Jan 31, 2022), the market capitalisation of the company is approximately RM169.80 million (having grown from its listing market capitalisation of approximately RM53.23 million), reflecting the group’s current outlook and prospects, size and scale of operations, as well as stakeholders’ confidence and belief in the company.

"The board believes that the proposed transfer (of) listing will enhance the company’s credibility and reputation and accord the company with greater recognition amongst institutional investors.

"Further, the proposed transfer (of) listing is also expected to enhance the confidence of the company’s business partners, employees and shareholders, through its profile as a company listed on Main Market of Bursa," OpenSys said.

According to OpenSys, the company and its subsidiaries have met the requirements for the proposed listing transfer based on the Securities Commission Malaysia's (SC) equity guidelines.

The SC's equity guidelines require companies seeking a listing transfer to comply with the SC's criteria on profit requirement and a healthy financial position, besides the company's public shareholding spread, according to OpenSys.

"The group has achieved an audited consolidated profit after taxation attributable to the owners of the company (net profit) of approximately RM11.08 million for the most recent financial year ended Dec 31, 2020 (FY20) and an aggregate consolidated (net profit) of approximately RM32.34 million for the past three audited FY18, FY19 and FY20," OpenSys said.

According to the group, its net profit had been adjusted to exclude any gains which are non-recurring in nature or are not in the ordinary course of business.

"Barring any unforeseen circumstances and subject to all relevant approvals being obtained, the proposed transfer (of) listing is expected to (be) completed by (the) third quarter of 2022," OpenSys said.

Hong Leong Investment Bank Bhd has been appointed as the principal adviser for OpenSys' proposed listing transfer, according to OpenSys.

At 5pm on Friday, OpenSys' share price ended one sen or 2.7% lower at 36 sen, giving the company a market capitalisation of about RM160.86 million.

OpenSys has 446.84 million outstanding shares, according to the company's filing on Friday.