PETALING JAYA: Singapore-based cloud solutions and integration services for business enterprises Cloudaron Group Bhd became the first company to put out an information memorandum for a listing on the Leading Entrepreneur Accelerator Platform (LEAP) yesterday.
Mercury Securities Sdn Bhd is adviser, placement agent and custodian for the company, which is now seeking approval in principle from Bursa Malaysia to list on the novel market.
According to a filing with Bursa Malaysia, Cloudaron is to have an excluded issue at 11 sen a piece to raise RM5.5 million for the company, which is expected to have a market capitalisation of RM85.3 million. It will issue 6.4% of its share capital, which comes up to 50 million shares to sophisticated investors.
About 43% of the proceeds are to be used for overseas establishment costs, working capital (34.6%) and estimated listing expenses, which it quantified at RM1.2 million.
Cloudaron has RM58 million in total assets and total current liabilities of RM24.2 million. It held RM5 million cash for the financial year ended March 31, 2017. About 81% of the group’s revenue came from Singapore, Indonesia makes up 12.6% and Malaysia 6.3%.
For the financial year ended March 31, 2017, the company made a net profit of RM5.2 million, 3,818.2% higher than the RM126,000 made for the same period in financial year 2016. This was on higher gross profit from all business activities; and a 103.9% increase in other income, mainly due to reversal of bad debts and inventory write-downs as well as an increase in grant received from the Singapore government.
The group saw a 8.3% decline in revenue for the financial year 2017 however, mainly due to its focus on the provision of holistic cloud solutions, that is involving workspace transformation which generate a higher gross profit margin. Its workspace transformation business, however grew 415.3% on its venture into the Indonesian market, increased contribution from the Malaysian market, and increase in recurring revenue from licensing of software.
The company’s founder, 37-year-old Malaysian Ong Chang Jeh, is also managing director and CEO of the company, established in 2010. The company has committed to a dividend payout ratio of up to 20% of future net profits to shareholders in each financial year.
Cloudaron which caters to small and medium enterprises and large corporations is concentrated in Asean with plans to expand its footprint within the current sphere of influence. Another 10 companies are eyeing a listing on the market.
Source: The Sun Daily