Pawnbroker Pappajack Enroute To Listing Aims To Raise RM50.10 Million For Expansion

Pappajack Bhd, a company involved in licensed pawnbroking services enroute to listing on ACE Market market is offering 167 million IPO shares at the issue price of RM0.30 per share.

The company which launched its prospectus today as the first licensed pawnbroking company to be listed on the ACE Market said that 33.40 million shares will be available for application by the Malaysian public;  6.68 million shares will be available for application by eligible persons; 83.50 million shares will be available for private placement to identified Bumiputera investors approved by the Ministry of International Trade and Industry, and 43.42 million shares will be available for private placement to selected investors.

The IPO is expected to raise RM50.10 million in proceeds, of which RM19.22 million will be allocated for the expansion of Pappajack’s new pawnbroking outlets within Peninsular Malaysia. Another RM27.08 million of the proceeds will be allocated for cash capital to existing pawnbroking outlets while the remaining RM3.80 million will be utilised to defray listing expenses.

 Pappajack, whose pawnbroking activities come under the Ministry of Housing and Local Government of Malaysia (“KPKT”) and is governed under the Pawnbrokers Act 1972, provides short-term micro-loan finance services to customers who pledge gold and luxury watches.

The Kuala Lumpur-based Company has a network of 25 pawnbroking outlets since the opening of its first pawnbroking outlet in 2014. The pawnbroking outlets are spread across Selangor, Pulau Pinang, Negeri Sembilan, Johor and Perak. Pappajack, which is opening 5 new pawnbroking outlets, is planning to serve a wider market through expanding its business network.

Managing Director and Chief Executive Officer of Pappajack Berhad, Mr. Lim Boon Hua said, “We plan to continue expanding our network of pawnbroking outlets and at the same time penetrate new geographical markets within Peninsular Malaysia.

By expanding our network of pawnbroking outlets, we would be able to increase our market presence and serve a wider customer base. The expansion will support and contribute positively to our financial performance in the future.”

In a statement, Mr. Lim noted that pawnbroking services play a vital role in the financial ecosystem by providing short-term micro-loans to the unserved or underserved who need immediate cash quickly which is easily accessible.

He added that the mainstream financial institutions’ emphasis on credit lending has made pawnbroking services which is principally base on asset lending more important among people who otherwise may not be able to get cash funding.

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