From left: M&A Securities head of corporate finance Gary Ting, Hextar Group CEO Datuk Eddie Ong, M&A Securities managing director of corporate finance Datuk Bill Tan, Malaysia Digital Economy Corp CEO Mahadhir Aziz, Daythree Digital managing director Raymond Davadass and chairman Datuk Ting Heng Peng
KUALA LUMPUR: ACE Market-bound Daythree Digital Bhd
is aiming to raise RM33.12mil from its initial public offering (IPO) to fund its business expansion.
In a statement, the tech-driven global business service provider said plans to utilise RM14.7mil or 44.4% of the proceeds for working capital requirements to recruit an additional 380 customer experience executives.
It said this was to enhance its capacity to service a growing number of contracts.
In tandem with the expansion, it will enter into a lease contract for rental of 380 units of computer equipment per customer experience executive.
"The number and size of contracts that we can undertake at any point in time depend largely on the availability of our working capital.
"By allocating a portion of our proceeds to satisfy various working capital requirements associated with number of staff allocated to respective project, our group will be in a better position to tender and expand our portfolio,” said Daythree Digital managing director Raymond Davadass.
A further RM7.1mil or 21.4% of the proceeds will be used to part-finance the additional working space required for its growing customer base and the expansion of its headquarters to cater for the rising number of employees as well as to set up a multipurpose facility for internal training and meetings.
The remainder of the proceeds will go towards IT capital expenditure, recruiting industry experts to capture growth opportunities in the local GBS industry, branding and marketing activities, as well as to defray the listing expenses.
Daythree Digital is issuing 110.4 million new shares, representing 23% of the enlarged share capital at an issue price of 30 sen per share.
Of the new shares, 24 million new shares will be made available to the Malaysian public via balloting, 12 million new shares for its eligible directors and employees under pink form allocations, and the remaining 74.4 million new shares for private placement to selected investors.
The existing shareholders of the company will also make an offer for sale of 12 million existing shares to selected investors by way of private placement.
Based on the enlarged share capital of 480 million shares, Daythree Digital is expected to have a market capitalisation of RM144mil upon listing.
The IPO is open for subscription from today until July 11, 2023.
M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent of the IPO exercise.
