KUALA LUMPUR (Nov 11): PublicInvest Research has derived a fair value of 49 sen for ACE Market-bound mainframe technology solutions provider Infomina Bhd.
In a note on Friday (Nov 11), the research house said that moving forward, Infomina intends to strengthen its research and development (R&D) activities and expand its technology solutions.
It said besides further regional expansion, the company intends to strengthen its branding efforts by organising seminars and customer relationship events as well as participating in more industry exhibitions and forums.
“We derive a fair value of RM0.49 based on a 14x PE multiple to its FY24F EPS of 3.5 sen.
“The IPO is expected to raise approximately RM32.5 million from the issuance of 81.2 million new shares.
“Besides utilising 23.4% of the proceeds for R&D activities, 17.0% and 2.7% of the proceeds are allocated for further regional expansion and branding activities, respectively,” it said.
PublicInvest said Infomina’s growth will be driven by: i) strengthening of R&D activities; ii) expansion of technology solutions; iii) further regional expansion; and iv) strengthening of branding, marketing and promotional activities.
It said the company’s competitive strengths include: i) acquisition of domain knowledge that facilitates delivery of viable solution; ii) ability to offer tailor-made technology solutions; iii) having a reputable customer base; iv) established relationships with major international technology partners; and v) experienced and dedicated management team and technical team.
“Key drivers may include: i) rapid pace of technological evolution that entails robust information technology (IT) services support to facilitate implementation; ii) digitalisation of supply network following supply chaindisruption; iii) growing number of companies with increased adoption of various IT services to facilitate business operations; and iv) governmentinitiatives to support the IT industry and adoption of digital technology,’ it said.
Infomina is slated to be listed on Nov 25.