KUALA LUMPUR (July 13): Ramssol Group Bhd shares rose as much as 28 sen or 62.22% above its initial public offering price to 73 sen in active trades in its ACE Market debut today
On market close, the homegrown human capital management solutions and technology specialist pared the bulk of the gains and ended its maiden trading day at 51 sen, which was six sen or 13.33 % higher than its IPO price of 45 sen. At 51 sen, it has a market capitalisation of RM113.76 million.
Ramssol was among the most actively traded stocks on Bursa Malaysia today, with 150.19 million shares traded. Its high trading volume is equivalent to about 67% of its issued share capital of 223.05 million shares.
Speaking to the media after the listing ceremony, its group managing director and chief executive officer Cllement Tan Chee Seng said he expects the prospects for the group to remain favourable as digitalised human resources for greater operational and cross departmental efficiency is expected to drive demand for human capital management solutions amid the Covid-19 pandemic.
"Since the outbreak of the global pandemic, remote collaboration and digital transformation have become increasingly important as more and more organisations adopt working remotely. Digitalisation leads to increased demand for human capital management solutions, ad hoc IT personnel that align with our IT augmentation and also employee engagement platform for greater efficiency which will eventually benefit the industry players in the long term, including Ramssol," said Tan.
The group currently has presence across Malaysia, Singapore, Thailand, Vietnam and Indonesia.
The group has raised RM25.1 million from its IPO proceeds, which will be channelled towards some of its growth strategy initiatives. Of this, RM2.5 million will be allocated for business expansion into the Philippines while RM6.3 million will be allocated for the expansion of the subscriber bases of employee engagement tool Feet's and collaboration platform Lark in Southeast Asia. Meanwhile, RM4.1 million has been set aside for R&D expenditure to enhance its human capital management solutions, RM7.6 million for working capital and the remaining RM4.6 million for listing expenses.
Besides these initiatives, other efforts under its growth strategy include growing its IT staff augmentation business and increasing the sales of software licences.
Prior to today's listing, the market had shown strong demand for Ramssol shares as IPO shares offered to the Malaysian public were oversubscribed by 102.88 times.