GIS solutions provider RedPlanet to list on LEAP Market

GIS solutions provider RedPlanet to list on LEAP Market
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KUALA LUMPUR (Feb 12): Geographic information system (GIS) solutions provider RedPlanet Bhd has received Bursa Securities’ approval to list on the LEAP Market in March 2020.

RedPlanet, which typically assists its customers in location search, navigation, logistics routing, customer targeting, and asset management, plans to raise RM4.39 million in gross proceeds via placement to selected sophisticated investors from the listing.

Its executive director Panjetty Kumaradevan Senthil Kumar said the fundraising and proposed listing will involve the placement of 19.93 million RedPlanet shares, which represent 12.5% of its enlarged share capital, at 22 sen per share.

The company plans to utilise RM630,000 or 14.4% from the proceeds to set up a research and development (R&D) department to study GIS applications in machine learning, artificial intelligence, and Internet of Things, with special focus on developing software related to asset identification and management.

“The R&D department is intended to develop and enhance our existing machine learning and spatial analytics toolkit through the development of solutions that can be delivered to customers through the software as a service model on a 'pay per use' basis,” said Panjetty Kumaradevan in a statement.

RedPlanet will also utilise RM2.53 million (57.8%) from the proceeds raised from the placement as general working capital to strengthen its staff force to expand its business to both Malaysia and overseas as well as to finance the group’s day-to-day operations.

Another RM220,000 or 5% will be earmarked for office renovation while the remaining RM1 million or 22.8% would be used to defray estimated listing expenses.

RedPlanet said it has secured RM26.97 million worth of ongoing GIS contracts with its customers as at Dec 6, 2019.

Based on the enlarged share capital of 159.40 million shares, the company is expected to have a market capitalisation of RM35.07 million.

M&A Securities Sdn Bhd is the approved adviser, continuing adviser and placement agent for the placement and listing exercise.