The homegrown digital solutions and application development specialist, Agmo has made the announcement on the launching of its prospectus in conjunction with the listing of the Company on the ACE Market of Bursa Securities.
The Initial Public Offering (IPO) of Agmo involves a public issue of 85.00 million IPO shares at an issue price of RM0.26 per share.
A total of RM22.10 million in proceeds is expected to be raised from the IPO, of which RM9.47 million will be allocated for the investment in a dedicated Research & Development (R&D) team, sales, marketing, and business development team as well as a dedicated technical support and maintenance services division. Meanwhile, RM6.22 million for working capital and
related capital expenditure catered for the expansion of its mobile and web application development and digital platform-based services as well as the setting up of a new office. Whilst, RM2.54 million of the proceeds will be allocated for establishing a training and development centre, Agmo Academy, while RM0.69 million will be allocated for the Company’s regional expansion to Singapore, and the remaining RM3.18 million for listing expenses.
“We are ready for the next stage of growth as we continue expanding our digital solution offerings. We expect the demand for digitalisation will continue to rise in Malaysia due to the growing need for business digital transformation, and that includes the adoption of mobile and web applications in order to remain competitive and relevant within their respective industries,” Chief Executive Officer of Agmo, Mr. Tan Aik Keong said.
“In line with our expansion plans, we are also looking at enlarging our geographical footprint in Southeast Asia by expanding into Singapore. This will further increase Agmo’s business profile in the region. The mobile and web application development industry in Singapore is expected to continue its strong growth trajectory, driven by digitalised consumer behaviour and attachment to mobile devices by the public to perform daily activities, digitalisation of businesses, and the implementation of digital transformation initiatives by the Government of Singapore,” he added.
In addition, Agmo plans to establish a training and development centre with its own training syllabuses to generate additional revenue while serving as a platform to recruit new industry talents for the Company.
“These courses will be designed to remain relevant in the foreseeable future as the application of the knowledge or skills required in the industry is projected to increase over time. As a start, we intend to offer training courses on subjects comprising artificial intelligence, blockchain, chatbot, mobile programming, and web programming, as these syllabuses currently have commercial and practical value in the digital solution industry. If an emerging technology is determined to have the potential for industry adoption, we will also include it in the training courses to better equip young talents with the necessary skills and industry expertise.”
“Through the training courses, we will also be able to monitor the progress and development of the students in terms of their technical skillsets, which will help us identify suitable candidates from amongst the students to join us, further increasing our talent pool,” he added.
Agmo is also a huge advocator of blockchain technology adoption in businesses, with the Company having successfully launched a blockchain-based remote participation and voting application known as Vote2U, which allows public listed companies to conduct AGMs and EGMs virtually, and shareholders to perform online voting for resolutions proposed by the
companies, amongst others.
“We are dedicated to spearheading blockchain technology awareness and promoting its use in businesses, as we aspire to make it more accessible than ever before. Our technical expertise and knowledge of blockchain technology as well as extended reality (XR) enable us to develop digital solutions that align with the current market demand. Both have been a game changer in facilitating us to assist corporate and small and medium enterprises in their digital transformation with customised digital solutions.”
Malaysia Digital Economy Corporation (MDEC) launched an initiative to drive digital investments in Malaysia in 2021, and blockchain is one of the five key emerging technologies. It is also in line with the Malaysia Digital Economy Blueprint or MyDIGITAL to advance the country’s digital economy by transforming Malaysia into a regional digital pulse by 2030.
“We strongly believe blockchain technology will be a key part of Malaysia’s next digital frontier. Agmo will continue to build on the adoption of blockchain technology to further enhance the features of the mobile and web application developed by us. We will also keep up with the latest technologies introduced to the market to identify any possible opportunities as well as further integrate these technologies into our business operations to enhance our digital solutions.”
The Principal Adviser, Sponsor, Underwriter, and Placement Agent of the IPO is Kenanga Investment Bank.
“We have no doubt that taking the essential step to an IPO will definitely reflects positively on Agmo’s corporate profile as it plans to keep up with the latest technologies and further expand its business capabilities. This exercise will further stimulate Agmo’s growth momentum in the local market and enlarging their geographical footprint in the region with Singapore being its first port of call,” Datuk Roslan Hj Tik Executive Director, Head of Group Investment Banking & Islamic Banking of Kenanga IB said.