Pawnbroking service provider Evergreen Max Cash Capital Berhad has entered into an underwriting agreement with Mercury Securities Sdn Bhd in conjunction with its upcoming initial public offering and listing on the ACE Market of Bursa Malaysia Securities Berhad.
EMCC’s IPO will involve a public issue of 267.6 million new ordinary shares in EMCC, representing 24.0% of its enlarged issued Shares, and an offer for sale of 43.0 million existing Shares, or 3.9% of its enlarged issued Shares, to selected investors by way of placement.
Out of the 267.6 million new Shares, 55.7 million Shares will be made available to the Malaysian public via balloting; 27.9 million Shares for its eligible Directors and employees as well as persons who contributed to the success of the Group (“Pink Form Allocations”); 44.6 million shares by way of placement to selected investors; while the remaining 139.4 million shares are earmarked for selected Bumiputera investors approved by MITI (Ministry of Investment, Trade and Industry).
Pursuant to the underwriting agreement, Mercury Securities will underwrite a total of 83.6 million Shares made available to the Malaysian public and for the Pink Form Allocations.
Established since 2012, EMCC is principally involved in the provision of pawnbroking services, through its network of 22 “Pajaking” pawnshops which are strategically located in densely populated areas with high foot traffic and commercial activity in Kuala Lumpur, Selangor, Negeri Sembilan and Pahang.
To complement its pawnbroking business, the Group is also involved in the retail and trading of gold and luxury products. Through its “Cahaya Gold” retail outlets, EMCC’s unredeemed pledged items which are in good condition are sold to third-party customers as part of its cash recovery process.
In addition, EMCC also offers pawnbroking consultancy services and IT solution services to third-party pawnbrokers whom they have identified to be not in direct competition with their “Pajaking” pawnshops.
EMCC’s Executive Director and Group Managing Director, Dato’ Low Kok Chuan said, “The signing of the underwriting agreement is a major milestone that brings us one step closer to becoming a listed company in Malaysia. We are grateful for the support of Mercury Securities, which reinforces the level of confidence towards EMCC.
The demand for pawnbroking services is expected to grow as it offers a faster solution for those who require immediate and short-term financial assistance as compared to getting a bank loan. In addition, our pawnbroking services fill the gap not served by financial institutions as our pawn loans offer an alternative for the unbanked and underbanked population by allowing them to convert their valuable personal items into cash in order to meet their funding needs. With the upcoming listing, we aim to strengthen our profile and enhance our brand awareness to capture larger market share.”
EMCC is scheduled to be listed on the ACE Market of Bursa Securities by September 2023, with Mercury Securities as the Principal Adviser, Sponsor, Underwriter and Placement Agent for its IPO.
