LEAP entrant MCOM settles 10.71% higher on debut

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KUALA LUMPUR (July 3): MCOM Holdings Bhd, which is planning to enhance its internet offering in Cambodia, settled 3 sen or 10.71% higher on market close of its maiden trading day on the LEAP market of Bursa Malaysia.

The stock settled at 31 sen today, versus its share issue price of 28 sen apiece, after about 35,500 shares were traded.

In a statement, MCOM, which has been awarded a 30-year Internet Service Provider (ISP) and frequency licence by the Telecommunication Regulator of Cambodia, also wants to localise its digital marketing solutions there.

According to the group’s chief executive officer and executive director Ho Kim Hun, the company has set up a data centre and network operating centre in Phnom Penh in June 2018 to monitor and manage internet services and infrastructure, as well as customer support and technical services.

“We started offering internet services in Cambodia in 2018, which will complement our existing digital marketing solutions. We believe this plan will not only increase our revenue stream, but also contribute to the growth of the internet infrastructure in Cambodia,” he added.

The internet penetration rate in Cambodia is 34% in 2017 and the Cambodian government aims to reach 70% penetration rate by 2020, the company said.

Additionally, Ho said MCOM will work on increasing the automation level of its mobile advertising platform, as well as enhancing its mobile advertising solution infrastructure.

“Currently, our mobile advertising platform only allows customers to view settlement reports. In order to upload or modify new digital marketing campaigns, our customers need to send emails to our marketing personnel.

“With the upgrade of our mobile advertising platform underway, we should be able to enhance the features of our mobile advertising platform towards a fully automated platform, which allows fully automated interface between advertisers and publishers,” he added.

From the listing, MCOM raised RM5.28 million via the placement of 18,856,000 shares at 28 sen per share to sophisticated investors.

It plans to use about RM2.90 million or 54.9% of proceeds from the placement as capital expenditure, to set up essential facilities to offer wired and wireless internet services in Cambodia. It will also use about RM880,000 or 16.7% of the funds raised, to increase the automation level of its mobile advertising platform and enhance its mobile advertising solution infrastructure.

With an enlarged share capital of 188.55 million shares, MCOM has a market capitalisation of RM58.45 million.