Securemetric Bhd has moved one step closer to becoming a public listed entity with the launch of its prospectus in conjunction with the company’s listing on the ACE Market of Bursa Malaysia Securities Bhd. Retail offering of 17 million shares for the Malaysian public closed on 30th October 2018, and the company is slated for listing on 13 Nov 2018.
Securemetric and its subsidiaries offer digital security products and solutions mainly across Southeast Asia, namely Malaysia, Vietnam, The Philippines, Indonesia, and Singapore. The group’s expertise lies in software licensing protection, two-factor authentication (2FA), public key infrastructure (PKI) and centralised authentication management system.
The group’s strong expertise and proven track record is backed by its local and foreign client base from diverse industries such as government organizations, financial institutions, public certification authorities, software development companies and IT service providers. For the financial year ended 31 Dec 2017, more than 85% of the group’s revenue was derived overseas.
At the IPO price of RM0.25 per share, Securemetric will list with a market capitalisation of RM60.9mil and raise RM17.0mil from its initial public offering (IPO). Of the total proceeds, RM5.70mil will be utilised for development of new digital security solutions, RM5.16mil for working capital purposes and RM1.70mil for business expansion. The remaining proceeds of RM4.44mil will be used for repayment of borrowings and defrayment of IPO expenses.
Chief Executive Officer of Securemetric, Edward Law shared: “We are confident of the growth potential of digital security solutions in Southeast Asia, especially within the financial and government sectors. With increasing adoption of technology by businesses and governments, enhanced digital security solutions is of utmost importance to avoid data leakages and economic losses arising from cyberattacks.”
“We are 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 RM8bil by 2020.”
Securemetric’s IPO involves a total offering of 68 million new ordinary shares, in the following manner:
• 17.0 million shares to the Malaysian public by way of balloting
• 48.0 million shares to selected investors by way of private placement, and
• 3.0 million shares to eligible employees.
On 2 Nov, Malaysian Issuing House Sdn Bhd announced that the Securemetric) IPO had been oversubscribed, with a total of 5,334 applications for 361,352,800 shares received for 17,000 shares available for the Malaysian public, representing an oversubscription rate of 20.26 times.
All notices of allotment of shares will be mailed to successful applicants on or before 12 Nov.
TA Securities Holdings Berhad is the principal adviser, sponsor, underwriter and placement agent for Securemetric’s IPO.