LGMS BERHAD has made its debut on the ACE Market of Bursa Malaysia Securities Berhad today. The Company began trading at 9:00 a.m. this morning under the stock name LGMS and stock code 0249. At the Initial Public Offering price of RM0.50 per IPO share, LGMS raised gross proceeds of up to RM45.7 million from this listing.
Early trading sees the stock rising at a premium of 20% to RM0.62. LGMS’ IPO attracted strong interest, with the offering to the Malaysian public being oversubscribed by 25.39 times. Against the backdrop of growing demand for digital goods and services, and digital disruption, the digital threat landscape is expected to expand as ASEAN economies thrive leading to potentially higher demand for all types of cybersecurity services in both public and private sectors. The market outlook remains robust for cybersecurity markets in the ASEAN region with market size in ASEAN projected to expand from RM14.66 billion in 2021 to RM28.47 billion in 2026, registering a compound annual growth rate (“CAGR”) of 14.2%.
With this expected growth in cybersecurity demand, more than 80% of the total gross IPO proceeds amounting to RM38.2 million will be utilised towards business expansion including the purchase of a new office with larger space, workforce expansion, capital expenditure and strategic regional expansion into fast-growing markets such as Singapore, Vietnam, and Cambodia. The remaining RM7.5 million has been set aside for working capital purposes and defrayment of listing expenses.
Speaking at the prospectus launch ceremony, Executive Chairman Mr. Fong Choong Fook said: “It is undeniable that cybersecurity has become vital in today’s dynamic environment, where companies are accelerating their digital transformation and businesses are depending on technology to function and thrive. With the booming digital economy, the global cyber threat continues to evolve at a rapid pace, with headlines reporting a rising number of breaches each year.
Having established a strong presence in Malaysia and with the IPO proceeds, the group is expanding its geographical footprint to have localised presence in other fast-growing markets within Southeast Asia such as Singapore, Vietnam, and Cambodia.
UOB Kay Hian Securities (M) Sdn Bhd (“UOB Kay Hian”) is the Principal Adviser, Sponsor, Sole Underwriter, and Placement Agent for LGMS’ IPO.