Securemetric eyes RM17 million from IPO

[ad_1]

KUALA LUMPUR: Digital security solutions provider Securemetric Bhd, which is en route to a listing on the ACE Market on Nov 13, is looking to raise RM17 million from its initial public offering (IPO).

Securemetric offers digital security products and solutions, including software licensing protection, two-factor authentication solution (2FA), public key infrastructure (PKI) and authentication management systems.

Speaking at a press conference in conjunction with its prospectus launch today, Securemetric CEO Edward Law said of the total proceeds, RM5.7 million will be used for development of new digital security solutions, RM5.2 million for working capital and RM1.7 million for business expansion.

He said the remaining proceeds of RM4.44 million will be used to repay borrowings and defray IPO expenses.

The offering involves a public issue of 68 million new shares, of which 17 million shares will be made available for the Malaysian public, 48 million for application by way of private placement to identified investors, while the remaining three million shares will be made available for eligible employees.

At the IPO price of 25 sen per share, Securemetric will list with a market capitalisation of RM60.9 million.

Asked whether the group is looking to enter new regional markets, Law said that it will keep its focus on existing markets for the next two years.

Securemetric has presence in five Southeast Asian countries, namely Malaysia, Vietnam, the Philippines, Indonesia and Singapore. Its clients include government organisations, financial institutions, public certification authorities, software development companies and IT service providers.

For the financial year ended Dec 31, 2017, more than 85% of the group’s revenue was derived overseas.

On its outlook, Law said Securemetric is confident of the growth potential of digital security solutions in Southeast Asia, especially within the financial and government sectors.

He said the group is well positioned to benefit from growing emphasis by corporates and governments on having robust digital security solutions to safeguard data, information, and assets.

“The potential market size for 2FA, PKI, authentication management systems and software licensing protection dongles in Southeast Asia is expected to exceed RM8 billion by 2020,” he added.



[ad_2]

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *