KUCHING: RedPlanet Bhd (RedPlanet) has received Bursa Malaysia Securities Bhd’s (Bursa Securities) approval to list on the LEAP Market of Bursa Securities. The listing is targeted to take place in March 2020.
RedPlanet is a Geographic Information System (GIS) solutions provider. The Company’s GIS solutions typically assist its customer in activities such as locationsearch, navigation, logistics routing, customer targeting and asset management.
According to executive director Panjetty Kumaradevan Senthil Kumar, the fund raising and proposed listing on the LEAP Market exercise involve theplacement of 19.93 million shares in RedPlanet, which represent 12.5 per cent of the enlarged share capital at RM0.22 per share.
“We expect to raise gross proceeds of approximately RM4.39 million via placement to selected sophisticated investors from the listing,” he said in a statement yesterday.
The company plans to utilise RM0.63 million (14.4 per cent) from the proceeds to set up a research and development (R&D) department to study GIS application in machine learning, artificial intelligence (AI) and internet of things (IoT), with special focus on developing software related to asset identification and management.
“The R&D department is intended to develop and enhance of our existing machine learning and spatial analytics toolkit through the development of solutions that can be delivered to customers through the software as a service model on a “pay per use” basis,” he further added.
RedPlanet will also utilise RM2.53 million (57.8 per cent) raised from the placement as general working capital to strengthen its staff force to expand its business to both Malaysia and overseas as well as to finance the group’s day-to-day operations; RM0.22 million (five per cent) for office renovation while the remaining RM1.0 million (22.8 per cent) would be used to defray estimated listing expenses.
As at December 6, 2019, the company has secured RM26.97 million worth of on-going GIS contracts with its customers.
Based on the enlarged share capital of 159.40 million shares, the company is expected to have a market capitalisation of approximately RM35.07 million.
M&A Securities Sdn Bhd is the approved adviser, continuing adviser and placement gent for the placement and LEAP Market listing exercise.