The licensed pawnbroking service provider made its debut on the ACE Market of Bursa Malaysia Securities Berhad today at RM0.39, which is 30% above its IPO price of RM0.30.
The Group’s IPO shares allocated to the Malaysian public of 33.40 million new shares were oversubscribed by 21.73 times.
The total proceeds raised from the IPO totalled at RM50.10 million, with RM27.08 million will be allocated for the cash capital of Pappajack’s existing 20 pawnbroking outlets while RM19.22 million will be used to fund the expansion of Pappajack’s pawnbroking outlets, while the remaining RM3.80 million to be utilized for listing expenses.
“We have come a long way since we opened our first pawnbroking outlet in Klang, Selangor, and today we are proud to be the first licensed pawnbroking group of companies to be listed on the ACE Market of Bursa Malaysia. We have been working diligently since 2014 to grow our business and finally, we are seeing the fruits of our hard work. Through experience in operating pawnbroking outlets and sheer determination from everyone at Pappajack, we managed to expand and operate 25 pawnbroking outlets around the country today,” said Mr. Lim Boon Hua, Managing Director and Chief Executive Officer of Pappajack Berhad.
“Pawnbroking has been around for centuries as an essential service for people in need of immediate funds through pawning their valuables as security to get a cash advance in which they are charged interest. Today, pawnbrokers in Malaysia are classified as non-bank financial institutions, pawnbroking complements the financial ecosystem by providing short-term micro-loans to customers who are financially unserved or underserved by conventional financial institutions. Pawnbrokers continue to play a vital role by supporting people who seek to obtain immediate funds to support their temporary financial needs in a manner which is convenient, quick and flexibly available,” he added.
Pappajack’s expansion plans include the opening of 5 pawnbroking outlets in Pulau Pinang, Pahang and Selangor following the listing.
“We are proud to announce that 2 new pawnbroking outlets are opened in Selangor and Pahang today, being part of the 5 planned new pawnbroking outlets, giving us a total of 27 pawnbroking outlets as of today.”
The Group has expressed its intension to set up and open new pawnbroking outlets and/or acquire 3rd party pawnbroking outlets in Peninsular Malaysia to widen its network and increase its market reach.
