Local human capital management solutions and technology provider, Ramssol Group Bhd, which will be listed on Bursa Malaysia's ACE Market on July 13, aims to raise RM25.1 million from its initial public offering (IPO) to partially fund its business expansion regionally.
Ramssol said of the RM25.1 million revenue, about RM2.5 million would be used to expand its business to the Philippines.
“A total of RM6.3 million will be allocated for the expansion of the mobile application involving internal employees, Feet’s as well as the third party collaboration platform, Lark in Southeast Asia.
"While RM4.1 million will be used for research and development (R&D) expenditure, RM7.6 million for working capital and the remaining RM4.6 million for listing expenditure," he said in a statement issued in conjunction with the launch of his prospectus online today.
Ramssol added that the IPO involved a total of 78.064 million shares comprising a public issue of 55.76 million new shares, of which 11.2 million shares will be allocated to the Malaysian public and 5.6 million to Ramssol's eligible directors, employees, business associates and subsidiaries, 38.96 million for a public offering to selected investors and a sale offer of 22.304 million shares available through a private share offering to selected investors.
According to a Bernama report, based on the IPO price of 45 sen, the company's total market capitalization after listing should be around RM100.37 million.
On its expansion plans to the Philippines, Ramssol Chief Executive Officer (CEO) Cllement Tan said the company has identified joint workspaces in Manila and its business will focus primarily on providing human capital management and student management solutions as well as human capital management technology applications.
"We aim to start operations there within 12 months after the listing," he explained.
The prospectus shows the opening of a new office in Manila which is estimated to cost RM2.75 million in the first two years of operation.
The cost will include the purchase of office equipment, staff salaries, office rent and marketing costs for human capital management and student management solutions as well as human capital management technology applications, he said.
On the expansion of Feet’s and Lark, Tan said, Feet’s is currently available in Malaysia and Indonesia and the company intends to expand to other Southeast Asian countries, namely Singapore, Thailand, Indonesia and Vietnam.
"As for Lark, we will continue to promote it in Malaysia and in those countries," he said.
The prospectus shows that over the past four financial years ended between 31 December 2017 and 31 December 2020, Ramssol revenue was generated mainly from Malaysia, Singapore and Thailand, with accumulated revenue from these countries amounting to 93.38%, 95.19%, 90 respectively. % and 86.72%.
"During the last four financial years, the group's revenue was generated mainly from the provision of human capital management and student management solutions with revenue contributions of 82.42%, 81.34%, 91.14%and 60.59%respectively," he said.
In financial year 2020, the company's total assets amounted to RM19.8 million, total liabilities of RM13.0 million, debt ratio level of 0.56 times and operating cash flow of RM1.71 million.
