EquitiesTracker receives in-principle approval for LEAP listing
By Digital News Asia February 19, 2019
- Intends to issue up to 42 million new ordinary shares at RM0.17 per share
- Expected to have a market capitalisation of about RM41.7 million upon listing
MALAYSIA-based equity investment research platform and investment training provider, EquitiesTracker Holdings Bhd (ET) received in-principle approval on Feb 14, 2019 to list its shares on the Leading Entrepreneur Accelerator Platform (LEAP) of Bursa Malaysia Securities Bhd.
Mercury Securities Sdn Bhd is the adviser, placement agent and custodian for the company's listing.
ET intends to issue up to 42 million new ordinary shares, representing approximately 17.1% of the company's enlarged issued share capital - at an indicative issue price of RM0.17 per share to raise gross proceeds of US$1.75 million (RM7.14 million).
[US$1 = RM4.0788]
The company is expected to have a market capitalisation of about US$10.21 million (RM41.7 million) upon listing. The excluded issue is targeted at sophisticated investors.
ET's revenue doubled from about RM1.7 million in FY16 to RM3.1 million in FY17. For the first half of FY18, revenue reached RM2.2 million.
In terms of profitability, the company rebounded from a loss of RM270,000 in FY16 to achieve a net profit of RM678,000 in FY17. The net profit for the first half of FY18 was RM551,000.
According to ET executive director and chief executive officer Alvin Vong (pic), “Demand for high quality investment research and investment training remains robust. The bulk of the listing proceeds or about RM4 million will be used to expand and enhance our digital investment research platform as well as our technology backend support systems.
“We will also be recruiting and acquiring more talent - especially software developers to enhance our infrastructure and develop applications. We also intend to have better premises to house our training facilities in the Klang Valley and Penang to better serve our existing clients and to also deal with the increase demand.
“The listing proceeds will allow us to increase our marketing efforts, explore expansion plans and strengthen our market position to be a key differentiator in line with our strategy.”
ET provides equity data and analytics on public listed companies in Malaysia, Singapore and Australia. It is also an investment training services provider offering bilingual training courses (in English and Mandarin) in Malaysia.
ET's history can be traced back to 1976 when its late founder, Jim Vong Nyam Yew began marketing its equity investment research platform.
At the time, Jim Vong saw a need for financial data of public listed companies to be collated, organised and presented in a systematic manner to support novice investors in making data-driven investment decisions.
Since 2007, it has expanded to provide investment training and currently offers two types of training - pre-designed and customised investment training to educate participants on the fundamental principles of performing financial analysis to carry out data-driven investment decisions.
ET's revenue is derived mainly from Malaysia and its customer base includes retail investors and institutional clients. The bulk of ET's sales comes from financial institutions such as securities/investment firms as well as Bursa Malaysia.
Many of them are long-term clients with an average of 14 to 15 years of business relationship. The company also has an active retail investor clientele base. In 2017, just under 1,700 retail investors participated in its investment training courses.