RedPlanet debuts on LEAP Market at 22 sen

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NEWS: RedPlanet makes debut on LEAP market

KUALA LUMPUR (Aug 4): Geographic Information System (GIS) solutions provider, RedPlanet Bhd has made a debut on Bursa Malaysia's LEAP Market at 22 sen, a premium of four sen from its offer price of 18 sen per share.

At the opening bell, the company, which was earlier scheduled to debut in March this year, saw 10,000 unit shares changing hands.

Its chairman Lian Wah Seng said the group is satisfied with the price and is looking forward to boosting it’s earning in the financial year 2021 on the back of strong order book.

“As at July 31, 2020, we have secured RM34.45 million of order book with more than 65 per cent to be delivered in the next 18 months. We believe there is potential for the application of GIS in the development of solutions for smart cities, the Internet of Things (IoT), mobile mapping and autonomous cars,” he told reporters after the group’s listing ceremony here, today.

Moving forward, he said, RedPlanet expects to further expand its presence by securing GIS contracts in Australia and the ASEAN region.

The company according to him sees the potential of expansion in Australia where the application of GIS is growing and has identified the utilities, infrastructure and agriculture industry verticals as well as industries for its entry in the country.

(From left) RedPlanet assistant finance manager Ng Chen Wei, project director Catherine Lee, Steve & Co executive chairman Datuk Steve Wan, RedPlanet executive director Mohamad Azhar Ahmad, independent director Phong Hon Wai, M&A Securities Sdn Bhd head of corporate finance Gary Ting, managing director of corporate finance Datuk Bill Tan and Lian.

Under the listing exercise, RedPlanet has raised RM3.59 million from the placement of 19.93 million shares of RedPlanet at 18 sen per share to selected sophisticated investors.

Of the total initial public offering (IPO) proceeds, RM500,000 (13.9 per cent) will be used to set up a research and development (R&D) department to study GIS application in machine learning, artificial intelligence (AI) and IoT, with special focus on developing software related to asset identification and management.

RedPlanet will also utilise RM2.02 million (56.2 per cent) 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; RM220,000 (6.1 per cent) for office renovation while the remaining RM850,000 (23.7 per cent) would be used to defray estimated listing expenses.

Based on the enlarged share capital of 159.40 million shares, the company is expected to have a market capitalisation of approximately RM28.69 million.